German Bund: Rallies to 161-161.08 cannot be ruled out - Natixis

Micaella Feldstein, Research Analyst at Natixis, suggests that since the daily stochastic is close to the oversold territory for bunds, they cannot rule out rallies to 161-161.08 (9-day moving average) ahead of 161.82-162 (daily Bollinger moving average).

Key Quotes

“Only a break above the latter barriers would affect the underlying downside bias but we don’t favor such a view.”

“The increase in the daily volatility, the bearish daily MACD and the sell signals on the weekly indicators indeed plead for a deeper decline. We’ll keep a lookout at the support at 159.80 (daily Bollinger lower band and rising trendline) whose break would provide fresh bearish momentum to 159.36-159.50 and 158.63-158.82 (weekly Bollinger lower band).”

“The resistances stand at 160.73, at 161-161.08 at 161.82-162 and at 162.93.”