FxWirePro Call review: Add short positions in 10-year bund

This is yet another review of our previous call, given out in October last year to short the 10-year bund at the breakout of 162.5 with an initial target of 160 area and subsequent longer-term target of 153. The article is available here, http://www.econotimes.com/FxWirePro-10-year-bund-heads-for-a-sell-breakout-367667

In a subsequent article, we have reaffirmed our outlook and also shared our forecast that the spread between the 2-year bund and the 10-year bund would widen over time. That review is available here, http://www.econotimes.com/FxWirePro-Keep-riding-the-bund-short-call-review-397028 . In addition to that, In January, we had called on our readers to go short in 10-year bund and long the German benchmark stock index around 11560.

In our review on 28th February, we warned our readers that our short call in bund is under threat due to election uncertainties in Europe and warned that it might break the stop loss around 168, if the Dutch election turns out in the favor right-wing candidate Geert Wilders. However, that has not happened and thankfully we maintained the stop loss. The 10-year bund reversed course after reaching as high as 166.3

Since our last review back in October, the 10-year bund has gradually moved higher to test the range high as can be seen in the chart above. And as expected, sellers have once again emerged near the range high and pushed down the price last week. We recommend adding short positions here and higher near the range high. The 10-year bund is currently trading at 162.5.