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December Bund futures erodes 20 year channel – Commerzbank

FXStreet (Barcelona) - Karen Jones, Head of Technical Analysis at Commerzbank, notes that bund futures have eroded the 152.66/70 key resistance 20 year channel, but a weekly close above this level is required to confirm the break.

Key Quotes

“Bund futures have eroded the 152.66/70 key resistance 20 year channel. We will need a weekly close above here to confirm the break and we notice the 13 count on the daily chart (we have not seen one of these since the end of August).What does this mean? It is a caution flag – it also offers TD resistance on the daily chart at 154.05.”

“Key short term support is last week’s low at 150.94 and the 2014 uptrend at 151.46. While this holds the upmove is intact. Above 154.05 the top of the channel lies at 155.30. Please note that we also have a point and figure target of 154.90.”

“Dips lower should remain well supported by the 151.38/150.94 uptrend line and November 19 low. Uptrend support is reinforced by the 55 day ma at 150.50 and only a close below this latter level would confirm the end of the bull run.”

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