Two weeks ago, I presented a bullish case for the German Bund (www.cfdtrading.com/g...ear-trend-line-1221/). Prices have since bounced on a long-term trend line at 148.50 are are currently testing a resistance at the 152 level. If this resistance (daily Kijun) breaks, this could be a new bullish signal. Depending on how the euro and European equities trade, my targets will be at 153 and 154.40 for July if prices do indeed break above 152. Theoretically, a strong rally this summer could pave the way for the Bund to rise back up to 156 during the third quarter. Please note that if the Bund reverses below 152, we still will have the long-term trend line to watch in July. If such a setback occurs, I'll be looking for a new bullish reversal at around 149 in order to better anticipate a strong move to the upside with a double bottom this summer.
