Quarterly Outlook
Fixed Income Outlook: Bonds Hit Reset. A New Equilibrium Emerges
Althea Spinozzi
Head of Fixed Income Strategy
Technical Analyst, Saxo Bank
If the bearish scenario plays out and Ørsted breaks below October trough, there is downside potential to 451-408. As can be seen from the weekly chart Ørsted formed a Symmetrical triangle pattern in Q2-Q3 and broke bearish out.
Following a triangle break out the share price has the potential to move equal length as the distance between the top and bottom of the triangle illustrated by the two vertical arrows.
There is no divergence on RSI indicating lower price levels.
However, if the bullish scenario plays out as described earlier i.e., where Ørsted closes above 649.20 the share price could test the underside of the lower rising trendline in the Symmetrical triangle i.e., a move to around DKK749 and 0.618 retracement of the July to October sell-off.