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Tuesday, August 08, 2006

Technical Play - Treasuries

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The market to conjure with ahead of the FOMC oracle is still the 10-year. The yield is practically on top of 4.910%-4.890% support. A bounce from support, above 5.010%, would be the signal for a test of the 5.130% breakout point.
Trading below 4.890% would suggest a dip to 4.770% initially. The long bond yield is technically weak below 5.044%, and it's set up for a dip to 4.834%, or to 4.729%.
The dollar is technically strong above Y114.07-Y113.99 support, and the signal for an uptrend would be decisive trading above Y115.65.

Nymex nearby crude oil, if it moves above $78.40 to new record highs, would be targeting $80.59 initially.

Comex gold, near $655.00, is liable to dip to a potential bottom at $646.00.

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