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2 Apr 2015
Treasuries: marginally bearish – RBS
FXStreet (Barcelona) - Dmytro Bondar, Technical Analyst at RBS, remains marginally bearish on treasuries, expecting further correction and consolidation in the area of 129-08 – 129-24.
Key Quotes
“The price closed above the 129-08 resistance after negating the bearish gap yesterday, which indicated there may be a prolonged period of consolidation in the area of 129-08 – 129-24.”
“However, as the slow stochastcis oscillator remains overbought and displays signs of negative divergence, this breakout does not make a bullish case.”
“Therefore, I favour staying marginally bearish on the market, and expect more reversal signals to confirm the change in sentiment.”
“There is a strong resistance at 129-24+. My bias was for another push higher before a decline, but it is difficult to call the exact reversal level.”
“Only a sustained break above 129-26 changes the view.”
Key Quotes
“The price closed above the 129-08 resistance after negating the bearish gap yesterday, which indicated there may be a prolonged period of consolidation in the area of 129-08 – 129-24.”
“However, as the slow stochastcis oscillator remains overbought and displays signs of negative divergence, this breakout does not make a bullish case.”
“Therefore, I favour staying marginally bearish on the market, and expect more reversal signals to confirm the change in sentiment.”
“There is a strong resistance at 129-24+. My bias was for another push higher before a decline, but it is difficult to call the exact reversal level.”
“Only a sustained break above 129-26 changes the view.”