Euro−Bund future – March 2010

Nicole Elliott from Mizuho Corporate Bank at 01/18/10

Comment: Having unwound the nonsense caused during the holiday-thin fortnight beginning the 21st December, what next? Schatz are leading the way, currently approaching record highs and benchmark yields hover marginally above the record low just over 1.00%. Today the Bund is struggling with retracement resistance at the top of a large Ichimoku ‘cloud’ and prices might hover under here all week. Dips towards the bottom of the ‘cloud’ at 122.00 are seen as buying opportunities for a rally later this month and during February. We continue to allow for moves to new record highs.

Strategy: Buy at 122.62, adding to 122.00; stop below 121.50. Add to longs on a daily close above 122.85 for 123.65 short term.