HALISTER1: OAT Futures May Extend Bounce After Defending Key Support Levels

OAT Futures May Extend Bounce After Defending Key Support Levels

(Bloomberg) -- OAT generic futures are accumulating fresh buying interest against the colliding medium-term average lines at ~147; recovery rally has the potential to extend to ~149 hurdle, Bloomberg technical analyst Sejul Gokal writes.
  • See chart here
  • OATU7 (Sept.) +48 ticks to 147.76
    • Generic contract has seen downside momentum weaken against bottom-end of ichimoku cloud and 100/200-DMA’s at ~147
  • 9-day RSI at ~35, working off oversold conditions
  • Initial resistance at 147.97 (23.6% retrace), 148.22-24 (July 5, 3 lows), 148.61-71 (38.2% Fibo, July 5 high) and then 148.97 (55-DMA)
  • As a risk factor, watch out for any consecutive closing breaks below 147; such development would resume the broader short duration theme
  • NOTE: Sejul Gokal is a FICC 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)

Tickers
2539Z GR (European Central Bank)

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