HALISTER1: BTP-Bund Tests 153BPs Support and Congestion Zone; 55-DMA Lurks

BTP-Bund Tests 153BPs Support and Congestion Zone; 55-DMA Lurks

(Bloomberg) -- Recent tightening of Italy-Germany 10-year yield spread may pause as it tests the 153bps Fibonacci target support, Bloomberg technical analyst Sejul Gokal writes.
  • Support also contained within a busy price activity area at 156-153bps
  • See chart; spread now -3bps at 154bps
  • Though daily MACD stays bearish, proximity of supports and tomorrows ECB meeting warrant caution on further tactical compression post-Italy “No” vote
  • 153-152bps represents 61.8% Fibonacci of Oct. 25-Nov. 28 widening phase and the 55-DMA
  • NOTE: Dec. 5, BTP-Bund May Narrow to 153Bps Support as Risk- Off Widening Fades
  • NOTE: Dec. 7, Bund/UST Spread-Narrowing Momentum Builds, Tests 201bps Hurdle
  • 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.
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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