The goal of this website is to provide an independent perspective on Financial Markets. We facilitate our users investment strategies based on Technical Analysis, a tool used to forecast the particular financial instrument performance, based on its past price history and its trading volume. We identify techniques and methods which will allow them to obtain a higher profitability. In addition, we are closely connected to lifelong learning objectives. Consequently, our job is aimed to achieve both educational and investment decision-making purposes.

Please, be aware that the charts resolution could apparently not be considered suitable. However, you may click on the chart under analysis which will enable you to have access to their original format and therefore it will provide you with a high-quality financial information.

Showing posts with label Bonds. Show all posts
Showing posts with label Bonds. Show all posts

Saturday, 20 March 2010

The Bund rebuilds its middle-term rising structure

In the last analysis we explained the high hurdle the Bund had to deal with. There were three reasons to suspect that the German bond would have considerable difficulties to continue going up:

  1. First of all, because of the rising channel top closeness, that suggested that the previous rebound (which began in February the 18th around the 122.50 zone) was about to be exhausted.
  2. Secondly, because of the presence of the 124.80 resistance, which could exert such a bearish pressure on prices that it could eventually jeopardise that February shy recovery.
  3. Finally, some short-term leading indicators, such as the Williams and the Stochastic were extremely overbought.
The overall circumstances led to forecast a moderate decline within this channel framework.

Prices tried stubbornly to go through the resistance of 124.80 for seven sessions. However, the goal was eventually postponed and a correction was brought about.

The subsequent fall has allowed the Bund to gather more bullish allies. As a result, it´s currently rebuilding its rising structure. As the middle-term scenario continues being led by increasing low-prices, the recent fall could have led the German bond to find out a new support in the area of 122.00. From this level, a new rising impulse could start. The next goal would be the next relevant resistance: 125.00.

The recommendation is to open long positions. Stop loss en 121.80.

Thursday, 25 February 2010

El Bund, prudencia ante la verticalidad de su reacción alcista.

El Bund alemán, después de no haber desarrollado una estructura chartista de caída similar a una cabeza y hombros, ha tenido una precipitada reacción alcista hasta el límite superior de dicho canal. La excesiva verticalidad de la subida, unido a la presencia de una resistencia en los 124.50, aconsejan actuar con prudencia en los niveles de precios actuales. Se recomienda entrar en posiciones cortas con stop loss en 125.50