Fixed Incomes pushing higher

January 30, 2014 by

Eurbunds have been in an uptrend for the past month. The recent move up in f.i  has coincided with a failure of equities to push higher and some of them actually selling off. I think equities are overbought across the board and we are going to see a push lower in equities as a result we are going to see investors put their money in bonds. I expect equities to continue selling off therefore bonds will push up. The Eur bund has broken 142.90 resistance which coincides with the 61.8% fibonacci retracement of the 147.27-136.40 move down. I expect this level to hold an the eurbund to push up to to 144.40 which is the next resistance. The same apllies to gilts. Gilts have been in an uptrend for this month. Gilts are approaching resistance @110.45. I am looking to take profit for the long position i am in and watch this level. A break of this level which is the right shoulder of the head and shoulder pattern three months ago would open the way for a leg up to 111.55 the 38.2 fib retracement of the 120.60-106.00 move down or the 112.25 resistance which is the the head of the heads and shoulders pattern 3 months ago.

eurbund_h14m30