BTP Futures Trend Still Bearish Despite Paring Half of 2017 Loss
(Bloomberg) -- BTP generic contract testing near 133.10, the 50% retracement of selloff from Jan. 2, with month-end flow driven rally entering an area where medium-term bears could step-in, Bloomberg technical analyst Sejul Gokal writes.
- See live chart; IKH7 +74 ticks to 133.05 vs. 133.09 high
- Area between 133.10-133.91 could bring about fresh selling pressure consistent with broader trend lower as defined by falling 21-week MA (133.66) and trading below weekly cloud
- 55-DMA at 133.17, Sept. downtrend at 133.67 and 61.8% Fibonacci and 100-DMA at 133.86-91
- MACD and RSI have nudged higher following oversold conditions noted during late January/early February
- For medium-term outlook to be challenged, a breach of 136.65 is required (Jan. 2 high)
- Month-end extension demand can support BTPs heading into the cash close at 5:15pm CET
- Bloomberg Barclays Pan-Euro Aggregate is forecast to extend by 0.07yrs
- NOTE: Sejul Gokal is a technical strategist who writes for Bloomberg. The observations he makes are his own and are not intended as investment advice.
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