RIDINGTHEBUND - Euro Bund Future Trading (FGBL)

ANALYST’S AGREE IN THEIR MORNING LETTERS : EVERY BOUNCE SHOULD BE SOLD

Mr. Marcel Mussler from http://www.mussler-briefe.com sees an established “Sell”-Signal in the BUND in front of the strong support 113.27 & 113.14. He thinks that a breakout will not force on it. A possible pullback on the broken daily uptrend around 114.40 should be a maximum on this pullback, he wrote today. He feels that the BUND is making a top with trend changing character.

The Commerzbank AG “Technical Analysis Research Corporates and Markets”-department wrote said that the BUND met its 116.11 target and failed. New high has not been confirmed by RSI which indicates an interim peak. The break below the 2 month uptrend adds weight on their view. They are looking for slide back to 112.15 after BUND failures to hold 113.24 and 112.91.

A “Fixed Income Technical Strategy”-department of a big swiss bank sees an outright bearish trend condition. They see a sell opportunity confirmed by indicators. Upside backdrops up to 113.95/114.10 are recommended as good sell areas if indicators are still in sell mode. A new break below 113.35 should trigger more downside pressure down to 112.75 and 112.00.

Other “Swiss Views” are talking about a trend change in the BUND . They are looking for break below 113.35 and favour a slide down to a 112.95/85 area. More supports are expected between 112.30/10 and lower at 111.20. They see resistances at 113.70 and 114.05/20.

Most analysts are changing their outlook for the BUND to “negative”

Our “friend” from YOU&US sees the BUND ” … now entering into a much more extended consolidation phase into next week, prompting a test of the area of support within the 113.19/70 range ….” . He believes the BUND is exposed to further selling pressure and downside while they trade below the 114.85 Gap. Next main supports : 113.94 and 113.56 retracement level.

The “Fixed Income Research” of the CreditSuisse believes that prices below 114.71 can trigger a deeper setback down to the uptrend from July 2008 at 114.24 and 114.15/05. They prefer to reverse shorts on this level with stops below 113.94. Their daily comment came out before opening today.

The Commerzbank - “Fixed Income Research” sees the support in the BUND around 114.14/17, followed by 113.98/92 and 113.71/70. They have resistance around 114.50/54 and 114.70/73 - expected trading range 113.98 (113.71) to 114.71 (114.85).

Regards

Mike