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June notionnel

files high,

targets 124-38

LONDON: June notionnel futures opened on MATIF in a confident mood on Tuesday and swiftly took out what had been a very tough resistance area around the 123.82 to 123.88 area, technical analysts said.

The next target will be at 124.38, a weekly high dating from more than two years ago, they said.

"We have very conclusively taken out the old highs -- the January resistance highs had held quite well -- but now it's looking pretty well set for further gains," said Charles Diebel, fixed income analyst at Technical Data in London.

June notionnel futures were trading 24 basis points higher at 124.00 by 0753 GMT, having left behind last week's new contract record at 123.88, and the January 24 high at 123.78.

The future set a new contract high in early trade, reaching a top at 124.04.

"The first target now is really at 124.38, which is a weekly high from April 1994," Diebel said.

Continuation charts show notionnel futures hit a high there in the week of April 10, 1994.

"But to be honest, it doesn't look as though there is any really significant resistance until 125.00," Diebel said.

"The long term charts are very constructive and momentum is clearly bullish at the moment," he said.

Weekly continuation charts show that notionnel futures were last abive the 125.00 area in March 1994.

On the downside, Diebel cited support at the old highs of 123.88 and 123.78 as initial levels.

Beyond there, the May 24 high at 123.60 would provide the next area of support, he said.

Richard Adcock, manager of technical research at HSBC Futures in London, put a support bar at 123.30 and said only a break below 123.14 would abort the long-term bullish picture.

"The overall picture continues to suggest further attempts to push higher," Adcock said in a research note.

June Pibor futures mimicked the positive mood of the longer end, opening two basis points higher and pushing straight onwards.-Reuter