iTraxx Snr Financial CDS Restoring Widening; 96bps Back in Focus
Source: BFW (Bloomberg First Word)
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(Bloomberg) -- iTraxx Europe Senior Financial CDS index is mounting another widening phase after recent corrective spell abates near important support concentrated in the 90bps region, Bloomberg technical analyst Sejul Gokal writes.
Alert: HALISTER1- See live chart here; CDS index (CBIL source) now at 93bps, 10bps wider since late January as political uncertainty drives higher cost of financial protection
- 100/200-DMA’s around 96bps are near-term objectives
- Additional resistance at 97bps, the halfway point of November-January tightening phase and then head-and- shoulders measured objective at 100bps, right near the 61.8% Fibonacci
- Tactical pullback since Feb. 8 cushioned against head-and- shoulders neckline and 26-day EMA at ~90bps
- Momentum stays bullish with MACD settled above zero, which keeps the widening theme in play
- German curve bull flattens, as stocks fall, swap spreads widen across the curve, with risk-off moves through markets on French presidential election developments
- 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)
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UUID: 7947283