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Todays Outlook for Bunds, Bobl, Schatz, and Gilts


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Taken from www.charmercharts.com

Bunds:

Bunds opened higher and buyers kept the pressure to the topside and we reached 139.77.
Now we have edged lower on the close, but we are still in quite a good position on the daily
charts to trade even higher and go for the highs of 140.23 quite quickly..

Technically we are able to do this, and we would still advocate at this point that we buy into
weakness for this anticipated move higher..

If we do dip lower initially we would be looking at 139.26/139.12 to hold downside
move...we would expect buyers in at these lower levels and we would expect them to hold
longs, keeping stops then below 139.00

Bobl:

 Bobl looks stronger again for this session and we would expect another assault on the all time highs of
125.69. This should occur over the next few sessions, therefore if any pullbacks are seen we are
going to be in, joining the buyers for this anticpated move higher.

We would be looking for any pullbacks to hold 125.26 and here is where we would expect buyers to
enter the market looking for further gains…
They will hold at 125.26, adding to 125.17 and would only reverse if below 125.05.

If we do lose 125.05 look for another small downward move with 124.94 targeted. This support is expected to hold and we should see another wave of buyers entering the market.

Schatz:

Despite the Schatz making some small gains yesterday we could not get above resistance
at 110.42. unless we break and close above 110.44 we still have the double
top in play and so the market still remains under pressure.

Support on the downside is found at 110.40 before yesterdays lows at 110.37 and then
110.33 before fib support at 110.28/7. Below here we have further fib support at
110.23/22 and if we see below here we look for good support at 110.17 where we
would look to attempt longs keeping stops below support at 110.10.

First resistance is at 110.42 before the highs at 110.44 where we would look to attempt
shorts keeping stops at the 110.47/48 level. If we get above here look to resistance
at 110.52.

Gilts:

Gilts had another good day yesterday breaking through resistance until we failed at 117.10, we came
back slightly from here. We remain very overbought on the 4 hourly charts.

If the bounce still has not finished we have resistance 117.10 up to yesterdays highs at 117.15. Above
here 117.39/40 before the recent highs at 117.68.

If the bounce has run out of steam look for a pullback to 116.82/83, below here we have support at
116.63/64 before good support at yesterdays lows at 116.44. If we make it below here we have support
at 116.31 it may be worth attempting longs here as we may be oversold, keep tight stops below
116.20. If we see through here look to 116.06/115.99, below here look to 115.67/59 then 115.49/43
before 115.05 and then we have January lows at 114.95.



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About the author


Carol Harmer has over 30 years experience of analysing and trading the world’s markets and is undoubtedly one of the most respected technical analysts in the world today. 

Her career started in the early eighties, trading futures on the floor at LIFFE where she quickly discovered Technical Analysis as a way to maximise profits. She was one of the first traders on LIFFE to discover and study this form of analysis and quickly became widely recognised as an expert in its use as well as highly profitable. 

This soon led to a position as Senior Technical Analyst for Midland Bank. 

She was later head hunted for the role of Manager of Technical Analysis for Nomura Bank and then as Head of Technical Trading at Credit Suisse. Carol is also one of the first T/A's from a bank to join the  STA (The Society of Technical Analysts) in the mid 80's and has trained and worked with some of the UK’s leading technical analysts.

In 1996 Carol launched 'Charmer Charts' to train independent traders in technical analysis and became the first person to provide daily forecasts for the established traders on the LIFFE floor.

She returned to the floor, trading her own account, advising traders throughout the day and continued her appearances on Bloomberg, CNBC and Reuters financial TV where she provided her valued, expert opinion on the direction of financial markets.

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