Spanish yields on the rise

Traders should go long Spanish 10 year government bond yields, according to Cornelius Luca, Global Chief Technical Analyst at Thomson Reuters.

Luca cites several reasons for the trade idea, including the fact that the yield is trading near an 8-month high, it is above its rising 21-day exponential moving average and because it registered a significant bottom on 12 March this year. Moreover, MACD is bullish and the fast stochastics are “slightly bullish”.

Luca sees initial resistance at 2.63 and beyond that at 2.75, with support at 2.028 and below at 1.687.

See chart.