Euro−Bund future –Dec 2009

Nicole Elliott from Mizuho Corporate Bank at 11/16/09

Comment: Dull as prices hold within the range established since July. We hope that the combination of Fibonacci and channel support, the rising Ichimoku ‘cloud’ and a potential ‘double bottom’ will eventually push this contract through key resistance at 123.04.

Strategy: Attempt longs at 121.35; 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.