Halister News

(Bloomberg) -- Price action on OAT1 generic contract suggests downside pressure may return despite Friday’s breakout above the late September downtrend line, Bloomberg technical analyst Sejul Gokal writes.

• See live chart here; OATH7 (March) now +7 ticks to 149.68
• Contract is marginally holding on to a four-day winning streak with today’s positive sentiment, following Friday’s break higher, proving to be short-lived
  • French bonds bounced from the open on Monday following favorable opinion polls for independent presidential candidate Emmanuel Macron, with support from short- covering demand
• With broader outlook still negative, confirmed reversal candlestick(s) against following resistances could entice fresh sellers wanting to re-join the broader bear trend:
  • 150.24 -- 61.8% Fibonacci of Jan.-Feb. fall
  • 151-05/11 -- 100-DMA, 76.4% Fibonacci
  • 151.44 -- Jan. 17 high
• For the medium-term downtrend to be negated, market must clear the Jan. high at 152.52
• MACD attempting to turn positive today, first time since early Jan.
• NOTE: Past view on Feb. 22 suggested OAT futures downside negated after closing break of 149.41

• 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