Halister News

(Bloomberg) -- BTP generic contract staged a bounce on Friday against double-bottom support at around 127.50, with current momentum setup favoring a breakdown rather than the formation of a triple bottom, Bloomberg technical analyst Sejul Gokal writes.

• See live chart; IKM7 -24 ticks to 127.95
• Near-term outlook remains negative while below 129.66 (March 16 high) at closing; this represents the latest swing high
  • For medium-term bears, only a move above 131 would challenge the broader downside outlook as the pattern of lower lows would be violated
• Daily MACD is configured negatively and slant lower while near zero line suggests momentum not stretched or oversold
• Support at 127.54 (Feb. 6 low), with bigger downside focus on 125.08, the 61.8% Fibonacci of 2015-2016 rally (see weekly chart)
• NOTE: March 7, Italian Bonds Showing Mounting Signs of Reversal After Rally

• 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.