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Bond of the Week: 30 August 2013
Bond of the Week : 30 August 2013
The GKN 6.75% 28 Oct 2019 price chart remains in a short term downtrend after having broken below support at the EMA 200 line in June and then failing to break back above it and the EMA 50 in July and earlier this month. It now forms a probable medium term top formation, having failed to regain the highs set in early May.
However, we also note that it found, and rallied from, significant support at the 110 level in the latter half of June, creating a floor for any further potential downside from here. Our RSI-14 momentum indicator has also begun to correct from oversold levels, indicating that we may even see further upside from the current price level, potentially testing the EMA 50 level and forming a short term base above the support level at 110.
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