Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Bloomberg Customers

http://www.businessweek.com/news/2012-11-13/triangular-consolidation-bullish-for-bonds-technical-analysis

Bloomberg News

Triangular Consolidation Bullish for Bonds: Technical Analysis

November 13, 2012

A so-called triangular consolidation trading pattern on 10-year Treasury note futures suggests a bullish breakout for the contract that would equal the high reached in July, according to Bank of America Corp.

“While bearish momentum divergences should be a concern for longer term bulls, the increasingly triangular consolidation points to a bullish break,” MacNeil Curry, chief rates and currencies technical strategist at Bank of America Merrill Lynch in New York, wrote today in a client note.

The December 10-year futures contract touched a high of 134 18/32 on July 25. It climbed today to 134 5/32. The note is “carving out a four-day symmetrical triangle, which points to a push” to the higher level, Curry wrote.

“From a 10-year cash perspective, this targets the pivotal 1.554 percent - 1.54 percent zone,” Curry wrote, adding “into here we would be on the lookout for greater signs of stalling.”

A break of 1.667 percent or a price of 133 11/32 would confirm a bearish turn in trend, he added.

Curry did not immediately return calls seeking comment.

In technical analysis, investors and analysts study charts of trading patterns to forecast changes in a security, commodity, currency or index.

To contact the reporter on this story: Susanne Walker in New York at swalker33@bloomberg.net

To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net


LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus