Gilt-Bund Spread Holds Compression Bias While Capped by 21-ExpMA
Source: BFW (Bloomberg First Word)
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UUID: 7947283
(Bloomberg) -- Gilt-bund 10-year yield spread retains outlook for near-term narrowing on charts with today’s widening fading once again at the down-slanting moving average line, currently at 106bps, Bloomberg technical analyst Sejul Gokal writes.
Alert: HALISTER1- See chart here; spread at 99bps vs 105bps wide
- Spread tightening may reach 88bps support before more significant level at 83bps (76.4% Fibonacci and high distribution zone)
- MACD firmly sub-zero, corroborating tightening scenario
- Closing break above 106bps (or 21-EMA) opens up new widening risks and re-introduces 118bps (61.8% Fibonacci of narrowing from Brexit vote reaction wide)
- 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.
Source: BFW (Bloomberg First Word)
To de-activate this alert, click here
UUID: 7947283