Bunds : Overlaps = Out of Steam

• Closer look at Bunds, following on from yesterday's post on EU10YY.
• Rally in bund prices since Jun09 is characterized by large price overlaps on the monthly candles.
• This suggests to me that the rally is retracement in nature, not impulsive.
• Trendline support below is at 122.23 this month. For May10 it is at 122.58. Last trade 122.67.
• Looking to set up a short trade near term.