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Technical analysis: Short Sterling
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Short Sterling – March 2009
Wed, Aug 13 2008, 07:52 GMT
by Nicole Elliott
Comment: The Gilt market has got the message, the spread over EZ15 and US Treasuries narrowing, and the yield curve should invert further. More astounding, and plausible if as reported the Bank of England’s pension fund has liquidated all assets and bought index-linked Gilts instead, yields on these have dropped suddenly this month and fifty-year ones yield just 25 basis points! Three and six-month Libor are firmly stuck at 5.78% and 5.98% yet this futures has retraced almost 61% of this year’s decline. This combined with an enormous Ichimoku ‘cloud’ appear to have ended the rally with a ‘spike high’ on the weekly chart. We now expect prices to decline slowly towards 94.300. Red contracts appear to have found interim highs between 94.800 and 94.950 (depending on the month) and should consolidate between here and 94.400 for another four weeks.
Strategy: Attempt shorts at 94.580/94.640; stop above 94.800. Add to shorts on daily and weekly closes below 94.490 for 94.300 short term and probably 94.000.
Published on Wed, Aug 13 2008, 07:54 GMT
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- Short Sterling – March 2009
Published On Wed, Nov 26 2008, 09:56 GMT - Short Sterling – March 2009
Published On Thu, Nov 20 2008, 12:38 GMT - Short Sterling – March 2009
Published On Wed, Nov 12 2008, 09:48 GMT - Short Sterling – March 2009
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Published On Wed, Oct 29 2008, 09:44 GMT
Mizuho Corporate Bank
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