Fgbl1
Double Bottom in German Bunds, Expected Rally to 171.2Trend Analysis
The main view of this trade idea is on the 15-Min Chart. German Bunds (FGBL1!) formed a double bottom or W chart pattern setup after testing 169.60 support and break above 170.3 resistance. Expectations are for the uptrend to continue, with the completion of the setup being around the 171.20 price level. Failure of the setup will be observed if FGBL1! were to decline below the long term moving average, taking the price to 169.80.
Technical Indicators
During the course of the double bottom setup, the respective short (50-MA), medium (100-MA) and long (200-MA) fractal moving averages had positive crossovers. Currently the price is trading above the respective MAs. Other technical indicators are also displaying bullish signs. The RSI is trading above 50 while the KST recently had a positive crossover.
Recommendation
The recommendation will be to go long at market, with a stop loss at 169.80 and a target of 171.2. This produces a risk/reward ratio of 1.37.
Disclaimer
The views expressed are mine and do not represent the views of my employers and business partners. Persons acting on these recommendations are doing so at their own risk. These recommendations are not a solicitation to buy or to sell but are for purely discussion purposes. Currently I have a position in FGBL1!.
EURO BUND- Higher Yields Fueled by Inflation 💶There is a broad consensus out there for higher Bund yields, and we agree.
Euro zone bond yields ticked up again last week as inflation expectations rise.
Our updated chart shows that from a TA point of view we will need to break over the resistance at 173 and aim higher.
If this resistance is not breached over, we could experience a significant drop in the price of the euro.
ps. As the rate of one currency increases relative to another, investors are attracted to the higher yielding currency. Additionally, the cost of owning the lower yielding currency increase as the bond yield differential moves in favor of the currency that is sold. On our previous idea we are looking at a short on EURUSD .
Let it be no confusion:
Both EURBUND can rise and eurusd can drop at the same time, as eurusd is the euro in comparison to the US Dollar.
the FXPROFESSOR
A strong volume explosion showing a potential bearish big move!As you can see in the chart, the Eurostoxx50 showed a big volume explosion indicating an intention to move down yet there is no confirmation unless it breaks the support area at 3171. I showed a consolidation area in the rectangle and what made me assume a soon bearish move is the breaking of the rectangle. On the other hand, if the market changes direction and breaks the resistance area at 3217, we will see a strong bullish move taking the market to a higher price.
A happy winner trade on the 30M chart as predicted!As i mentioned earlier, the market did rally up and created a beautiful winning trade on this great market (FGBL1)...but i am sure, tomorrow early morning by 7:00 the bulls will keep the market till around 177.10 at least!
So, it is better to close the trade now as the market is reaching its closing time and go sleep.
Enjoy :)
The FGBL1 is ranging to get blasted up by tomorrow morning!As i said today, the market is getting ready to go up by early tomorrow by 7:00 and 8:00 morning (European time) as the volume will get higher and higher by that time.
Since we are reaching the market closing at 21:00 there is not any significant volume that can push the market up.
All the best.