in association with

Market Update 24th February 2011

How strong is the Bund rally?

The Technical Trader’s view:
Euro Bund Continuous 138
137
136

100.0%
135
134
MONTHLY CHART
133
100.0% 261.8%
132
131
126.53 130
129
The long-term bund chart
124.60 128
127
remains extremely
126
125 bearish.
124
123
122
118.48 High
121
120
The succession (five
119
118 pinpointed here) of
117
116 breakdowns through the
115
114 support from Prior Highs
113
112 – both diagonal and
111
110 horizontal remains a
109
109.66 Low 108 blight on the market.
107
106
105
104 Anyone of those supports
103
102 might have formed a
101
100 bottom to the market –
15000
10000 but none did.
5000
x100
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

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accuracy of any statements or forecasts contained herein and no responsibility or liability is accepted for losses arising from transactions undertaken or investments purchased, sold or
held on its recommendation. Consequently, any persons acting on information contained herein do so entirely at their own risk. Although the opinions contained herein were
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other customers or connected persons may from time to time undertake transactions or deal in investments mentioned in this information memorandum or have a material interest,
relationship or arrangement in relation to them.
 in association with
Euro Bund Mar 11 134.0

133.16 High 133.5

133.0
DAILY CHART
132.5

132.0

131.5
So the rally of the last week or
131.0 so has to be seen in the
130.5

130.0
context of the longer term
129.07 Low 129.5
chart.
129.0

128.5

128.53 Low
128.0
Just two of the broken
127.5
127 Low
127.0
supports are superimposed
126.5
on this short-term chart – and
January 2009 Prior High support 126.0
125.47 Low 125.5
will act as a medium-term
125.0
band of resistance.
124.5
124.53 Prior High 124.27
124.0
from the weekly
123.76 Low
Continuation chart 123.5
Certainly the rally has
123.0

122.5 penetrated the first short-term

122.0
band of resistance 123.76 -
121.5

1000000
124.27, and the near-term
500000 down trend resistance
16 23 30 6 13 20 27 4 11 18 25 1 8 15 22 29 6 13 20 27 3 10 17 24 31 7 14 21 28 7 (coincident with the horizontal
September October November December 2011 February March
band) but drifting open
interest suggests the covering
of shorts rather than new
longs.

If the rally is to enthuse the

bulls, there needs to be a
great deal more price action
with which the market can
build a bottom from which it
can convincingly attack the
resistances above.

Mark Sturdy
John Lewis
Seven Days Ahead

SEVEN DAYS AHEAD Professional trading guides and recommendations for the World's markets

Authorised and Regulated by the FSA 124 REGENTS PARK ROADLONDON NW18XL TEL +44 (0) 7849 933573
E-MAIL MSTURDY@SEVENDAYSAHEAD.COM WWW.SEVENDAYSAHEAD.COM
This information memorandum has been prepared solely for informational purposes for customers of Seven Days Ahead and is based on publicly available information from sources
believed to be reliable. It is not an offer, recommendation or solicitation to buy or sell, nor is it an official confirmation of terms. No representation is made as to the completeness or
accuracy of any statements or forecasts contained herein and no responsibility or liability is accepted for losses arising from transactions undertaken or investments purchased, sold or
held on its recommendation. Consequently, any persons acting on information contained herein do so entirely at their own risk. Although the opinions contained herein were
considered valid at the time of release, financial markets are subject to rapid and unexpected movements. Seven Days Ahead, its associated companies, their directors, employees,
other customers or connected persons may from time to time undertake transactions or deal in investments mentioned in this information memorandum or have a material interest,
relationship or arrangement in relation to them.