The Bund is a very technical instrument and can be very hard to understand its movements. We decided to dedicate weekly reports in order to help you trade it and anticipate its trends.

It seems now to be in a bullish trend (minimum in July). Over the last two months it has been moving in a range between 114 and 115. The maximum touched last week at 115.58 represents the 38,2% of the Fibonacci Retracement which means that above that area we expect a further raise.

First of all, it is important to get both a short and a long term view.

Long Term Weekly Chart: (click to enlarge)

The first important resistance is around 117, in the meanwhile it could test the bottom part of the uptrend channel that now passes at 113,20. We could try to open long position in case it tests this area with growing volumes. Otherwise we would better wait the test of 117 (short position to be considered).

White candle and average volumes have characterized today's session of the Dax future that has traded for the last 9 weeks within the range 7.030 - 6.690. Our advice is to wait till it moves out of this restricted channel. Technically talking we should open short positions if the future hits and breaks the support at 6.690. On the other hand, above the resistance at 7.030, the breakout should push the price up.

Short: < 6.690 and T1 at 6.400.

Long: > 7.030 and T1 at 7.430.