German Bund: Under pressure - Natixis
As the daily stochastic for German Bund is overbought, the contract could retreat to the thresholds at 162.30-162.44 (daily Bollinger moving average), according to Micaella Feldstein, Research Analyst at Natixis.
“These dips will be seen as corrective: the contract should indeed initiate a new round of rallies, as the weekly indicators keep on recovering, to the resistances located at 163.48-163.62 (daily Bollinger upper band). The clearance of the latter would be needed to initiate an extension of the recovery towards to 164-164.13 (Fibonacci extensions and to 165.05-165.19 (weekly parabolic). There will need a break of the latter to contemplate further advance to 165.72 (declining trendline) and 166.03.”
“The supports are located at 162.30-162.44, at 161.90, at 161.30 and at 160.73-160.96.”