Bunds outlook improves as key resistance broken

LONDON: Following is a selection of comments from analysts on important technical developments in the bond and interest rate markets.

HELABA LANDESBANK HESSEN-THUERINGEN

BUNDS: "The key resistance at 143.15, derived from the 61.8 percent retracement of the downward stimulus from December to January, has been overcome. As a result, the outlook has improved, alongside the short-term uptrend channel. The next resistances are at 143.80 and 144.07."

CLIVE LAMBERTS, FUTURESTECHS

BUNDS: "Bunds have finally seen off resistance at 143.15, although it wasn't as clean a move as I would have liked. This move has been threatening for a while and Wednesday's downside rejection hinted that this might be the time.

"143.03 was an intra-day level, in fact there's a single print vacuum between 142.96 and 143.02, and 143.05 is the Marabuzo support from yesterday's large green candle, so this now becomes our 'bullish above' level as intra-day price action about 143.15 wasn't as clean as we would have liked, as mentioned already.

"144.07 is the next target being the January 24 high/failure. This protects 144.30, the 61.8 percent retrace of the selling seen in December and January."