(1/2): Bunds have been firm since........>

BUND TECHS: (1/2): Bunds have been firm since rebounding off the Jan 14 low. The

recovery has taken on a stronger bullish significance following yesterday's

price action:

- Most importantly, futures yesterday cleared an important trendline resistance

at 171.97. This is the second time this has happened this month, the first

attempt failed on Jan 8.

- Reinforcing the bullish significance of yesterday's break, we can see by

looking at momentum studies that a condition known as bullish divergence between

price and momentum has been building since Oct 21. This highlights that although

price has continued to trend down, the RSI-14 in this instance, has gradually

been trending up and suggests an increased risk of a bullish rebound in price

action.

- Timing is everything and the trendline break goes a long way toward confirming

the momentum / price divergence.