July 15 (Bloomberg) -- Treasury 10-year futures contracts are poised to extend a three-month decline, DZ Bank AG in Frankfurt said, citing trading patterns. Using a chart of the contract price, DZ Bank drew a descending line connecting the highs in March and May and extrapolating it out to today. Futures contracts for September delivery fell to 117 1/2 today, below the current trend line level of 117 25/32, failing to sustain a push above the line last week. “The downtrend is confirmed and reinforced,” said Glenn Marci, a fixed-income analyst for DZ, Germany’s fifth-biggest bank. “That indicates that it’s going to fall further.” Futures for September delivery fell 6 6/32, or $61.88 per $1,000 face amount, from April through June, according to data compiled by Bloomberg. It dropped as low as 112 25/32 on June 11. The contract slid 9/32 today as of 9:34 a.m. in London. In technical analysis, investors and analysts study charts of trading patterns and prices to predict changes in a security, commodity, currency or index. To contact the reporter on this story: Wes Goodman in Singapore at wgoodman@bloomberg.net.

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