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Bond of the Week: 16 August 2013

John Lewis bond set to test June support

    

The John Lewis 8.375% 8 April 2019 bond price has been retracing the recovery rally from the June floor near 125.  Resistance was encountered at the start of August near the 50-day moving average.  Note that the previous top formation also exerted a depressing effect.

 

The short-term decline has now approached the June floor, near 125.  Really it would take an upward dynamic to reaffirm support at that platform.  Should it fail, the next important chart support is not until the sideways area along 120, though we note less significant support beforehand, in the 124 region.


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