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26 Jun 2013
Flash: Bunds stabilize near 140.00 support – RBS
FXstreet.com (New York) - According to Technical Strategist Dmytro Bondar at RBS, “Bund prices stabilized near 140.00 support and started to form a homing pigeon reversal candlestick pattern, which would be in place should the market close as it trades now (this is similar to inside session but with a black candle).”
If so, it would indicate the end of the selloff and a likely bounce to the 142.00/43 resistance region, potentially 143.15 before moving to a new bearish phase. “The long-term picture remains bearish, as a monthly yield chart has formed a double-bottom and broken the resistance line post inverse advance block candlestick pattern pointing to 2.1% and 2.33% yield targets.” Bondar warns.
If so, it would indicate the end of the selloff and a likely bounce to the 142.00/43 resistance region, potentially 143.15 before moving to a new bearish phase. “The long-term picture remains bearish, as a monthly yield chart has formed a double-bottom and broken the resistance line post inverse advance block candlestick pattern pointing to 2.1% and 2.33% yield targets.” Bondar warns.