Bund approaching much tougher resistance
As traders unsurprisingly head to safe havens, one of the biggest movers has been the bond market, which has seen a vicious rally higher. I am having a look at the bond market this morning. How far will this rally go? This is a tough call to make but given the overhead band of resistance, which the market has reached, my suspicion is that we should at least see a pause here.
So, what makes a ‘tough’ area of resistance on a chart? This happens when a number of chart factors converge in the same area – so for the Bund March contract market this morning (N.B. this is about to expire) we have 2 double Fibos at 170.90/96 (61.8% retracement of the move seen this year and the 50% retracement of the move down from August 2021. Directly above here lies the 200-day ma at 171.66 AND another double Fib oar 172.52/69 (the 78.6% retracement of the move seen this year and the 61.8% retracement of the move down from August). In addition, we have a whole host of resistance coming in from price – previous highs and lows. We also have the 55-week ma coming in at 171.54.
MY point is – there is a LOT of resistance in this band, and you may like to tighten up stops if you are in it!
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The information posted on Trading View is for informative purposes and is not intended to constitute advice in any form, including but not limited to investment, accounting, tax, legal or regulatory advice. The information therefore has no regard to the specific investment objectives, financial situation or particular needs of any specific recipient. Opinions expressed are our current opinions as of the date appearing on Trading View only. All illustrations, forecasts or hypothetical data are for illustrative purposes only. The Society of Technical Analysts Ltd does not make representation that the information provided is appropriate for use in all jurisdictions or by all Investors or other potential Investors. Parties are therefore responsible for compliance with applicable local laws and regulations. The Society of Technical Analysts will not be held liable for any loss or damage resulting directly or indirectly from the use of any information on this site.
So, what makes a ‘tough’ area of resistance on a chart? This happens when a number of chart factors converge in the same area – so for the Bund March contract market this morning (N.B. this is about to expire) we have 2 double Fibos at 170.90/96 (61.8% retracement of the move seen this year and the 50% retracement of the move down from August 2021. Directly above here lies the 200-day ma at 171.66 AND another double Fib oar 172.52/69 (the 78.6% retracement of the move seen this year and the 61.8% retracement of the move down from August). In addition, we have a whole host of resistance coming in from price – previous highs and lows. We also have the 55-week ma coming in at 171.54.
MY point is – there is a LOT of resistance in this band, and you may like to tighten up stops if you are in it!
Disclaimer:
The information posted on Trading View is for informative purposes and is not intended to constitute advice in any form, including but not limited to investment, accounting, tax, legal or regulatory advice. The information therefore has no regard to the specific investment objectives, financial situation or particular needs of any specific recipient. Opinions expressed are our current opinions as of the date appearing on Trading View only. All illustrations, forecasts or hypothetical data are for illustrative purposes only. The Society of Technical Analysts Ltd does not make representation that the information provided is appropriate for use in all jurisdictions or by all Investors or other potential Investors. Parties are therefore responsible for compliance with applicable local laws and regulations. The Society of Technical Analysts will not be held liable for any loss or damage resulting directly or indirectly from the use of any information on this site.
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