In the interest rate cut game played by Bernanke and Trichet (still to play), the bund future has shown its volatile character. The blu trendline has been forced twice but bund has always bounced back below it. We think that it could be an important resistance because Trichet does not reckon a rate cut would be a good solution for EU well being. Our first support is 116.04 while next resistance is today's high at 117,55. High volatility is still expected.
Since our last analysis Eurex bund future has moved between the blue and yellow trend line, with shorter candles and a decrease in volatility. The potential downside movement is consistent but the yellow line is offering a very solid support. A further movement below this line will potentially be supported at 115.58. Then 115.15 and 114.53. Upside movement will find its first resistance at 116.43.
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FTSE 100 index is the underlying of FTSE 100 future. It is a share index constituted by the 100 most capitalised companies listed on London Stock Exchange.
This contracts is listed on Euronext derivatives exchange and it is quoted in index points worth 10 GBP per point. This contract attracts a large number of investors because it offers a good balance between value/volatility.
Our trading system is based on the nearest quoted month. Signals are usually sent just before the opening or during the trading day, depending on market conditions. Trading starts 8:00 and ends at 17:30 GMT from Monday to Friday.
This is an overnight trading system.
Currency = Great Britain Pound GBP
Contract size = 10 GBP per index point
Minimum price fluctuation (tick) = 0,5 index points
Tick value = 5 GBP
For more technical info click on www.euronext.com
The trading system we have developed is based on a trend following approach. We strictly follow this rule so we tend to reduce the number of trades during the year, to provide good entries on significant levels where we believe (statistically) that the market will bump or will break. We strongly believe in overnight and trend following trading.
Maximum Stop loss = 700 GBP
Initial Capital required = 15,000 GBP
Since our update last week, the Gold Composite Future has moved within the range indicated (895-935 $ an ounce). The red trend line together with the support at 895 $ have firmly supported the future, that is now trading trough new highs. We expect it to break the historic high at 936.85 $ an ounce.
Hold the position opened at 895 $.
First Resistance set at 937 $.
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