HALISTER1: BTP Yield Downside Risks Prevail Despite 1.77% Fibonacci Bounce

BTP Yield Downside Risks Prevail Despite 1.77% Fibonacci Bounce

(Bloomberg) -- Italy 10-year yield remains skewed to extend retreat even as it bounces from 1.77% target support; next interim support from 55-DMA at 1.75%, Bloomberg technical analyst Sejul Gokal writes.
  • See LIVE chart; yield +3bps to 1.84%
  • BTP yield holding above ichimoku cloud after mid-month bounce from 1.77% Fibonacci support
  • MACD dipping under zero level today, reflecting the bearish- to-bullish shift in trend in BTPs
  • Support at 1.75% (55-DMA) and then 1.68% (Nov. 8 low) and 1.65%-1.63% (Nov. 2 low, 50% of Aug-Nov. BTP selloff)
  • Downside risk in yield heightens if it can sustain this week below 1.88% level; further resistance (gap window) at 1.96%-2.00%
  • NOTE: Nov. 29, BTP Eyes Bullish Pattern Resolution; Yield May See 1.77%
  • 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)

To de-activate this alert, click here

UUID: 7947283