German Bunds: Pullbacks cannot be ruled out - Natixis

Micaella Feldstein, Research Analyst at Natixis, explains that given that the daily stochastic is nearing overbought territory for bunds, pullbacks cannot be ruled out towards the 162.03-162.13 and even to 161.32-161.47 (9-day moving average).

Key Quotes

“A break below this last level is unlikely, however, given the strong buy signal on the weekly chart.”

“New rebounds are indeed expected quite soon towards 162.50 (gap opened last month, on 24 April) and 163 (monthly Bollinger moving average). The break of the latter would lead to 163.53 (50-week moving average) and 164.”

“Supports are located at 162.03-162.13, at 161.70, at 161.32-161.47, at 161 and around 160.30.”