Euro−Bund future –Dec 2009

Nicole Elliott from Mizuho Corporate Bank at 11/09/09

Comment: Very dreary that Bund futures are back down where they were the week before last – and within the range established since July. A marked preference for Schatz and Bobls mean these are trading at the higher end of this year’s ranges. We hope that the combination of Fibonacci and channel support and the rising Ichimoku ‘cloud’ will once again stem this futures contract’s decline.

Strategy: Attempt longs at 120.75; stop well below 120.50. Add to longs on a daily close above 122.00 and again above 123.00 for 124.00/124.60 before year-end.