26 Jul 2013
Flash: Gilts rupture support, H&S in play – RBS
FXstreet.com (New York) - Technical Strategist Dmytro Bondar at RBS identifies the short-term trend analysis of Gilts.
Key quotes
“The minor pull back to the neckline level was deemed temporary, as an inverse head and shoulders theme remains in place with 2.80% and 3.13% yield targets. The market has been supported by a relatively short- term bullish Treasuries chart, which still can see some upside before reversal.”
However, “the Gilt market looks even more bearish after the 10-yr future broke 112.33 retracement and trendline level also being the bottom of a bear wedge pattern, suggesting a move to a bear market might materialize earlier than expected.”
Key quotes
“The minor pull back to the neckline level was deemed temporary, as an inverse head and shoulders theme remains in place with 2.80% and 3.13% yield targets. The market has been supported by a relatively short- term bullish Treasuries chart, which still can see some upside before reversal.”
However, “the Gilt market looks even more bearish after the 10-yr future broke 112.33 retracement and trendline level also being the bottom of a bear wedge pattern, suggesting a move to a bear market might materialize earlier than expected.”