19 Jul 2013
Flash: Gilts bullish in short-term – RBS
FXstreet.com (New York) - Technical Strategist Dmytro Bondar at RBS identifies the short-term trend analysis of Gilts.
More upside projected?
According to Bondar, “A large head and shoulders theme is in place on the generic yield chart. The market has already tested the 138.2% target of 2.60% and had a pull back, which can be considered as a return move to the neckline level (also coinciding with the gap resistance level of 2.15%).”
In addition, “It makes me believe that the market will see more upside in the near-term (presumably driven by Treasuries, which appear most constructive on the charts), reaching up to the 2.15% yield level, but then resuming the long-term H&S bearish theme to 2.80% and 3.13% yield targets by the end of 2013.”
More upside projected?
According to Bondar, “A large head and shoulders theme is in place on the generic yield chart. The market has already tested the 138.2% target of 2.60% and had a pull back, which can be considered as a return move to the neckline level (also coinciding with the gap resistance level of 2.15%).”
In addition, “It makes me believe that the market will see more upside in the near-term (presumably driven by Treasuries, which appear most constructive on the charts), reaching up to the 2.15% yield level, but then resuming the long-term H&S bearish theme to 2.80% and 3.13% yield targets by the end of 2013.”