6 Mar 2015
Bunds resume their bull trend – BAML
FXStreet (Barcelona) - Strategists at BofA-Merrill Lynch, note technicals suggest that the month long correction is finished and Bunds might now resume the long term bull trend.
Key Quotes
“Evidence says that Bunds are resuming their long term bull trend. The bullish daily reversal formation (Bullish Engulfing Candle) from the 50d moving average (now 38.1bps) and bullish turn in daily momentum (RSI) from overbought territory, say that the month long correction is finished and that the long term bull trend is resuming.”
“In the sessions and weeks ahead we look for a test and break of the Feb lows at 23.9bps, with potential for a push to long term channel resistance at 13bps before renewed signs of basing.”
Key Quotes
“Evidence says that Bunds are resuming their long term bull trend. The bullish daily reversal formation (Bullish Engulfing Candle) from the 50d moving average (now 38.1bps) and bullish turn in daily momentum (RSI) from overbought territory, say that the month long correction is finished and that the long term bull trend is resuming.”
“In the sessions and weeks ahead we look for a test and break of the Feb lows at 23.9bps, with potential for a push to long term channel resistance at 13bps before renewed signs of basing.”