By Wes Goodman July 29 (Bloomberg) -- Treasury 10-year futures contracts, heading for a fourth monthly decline, will extend losses into August judging by trading patterns, according to DZ Bank AG. Using a chart of the contract price, DZ Bank drew a descending line connecting the highs of the second and third weeks of July and extrapolated it out to today. The line suggests a price of 117 1/8 for today, above the current level of 116 3/32. “While the price is below that line, the tactical approach would be to sell into rallies, rather than to buy on dips,” said Andy Cossor, the Hong Kong-based chief market strategist for Asia at Frankfurt-based DZ Bank, Germany’s fifth-biggest lender. Futures contracts for September delivery fell 5/32 this month, or $1.56 per $1,000 face amount. The contracts slid in April, May and June for a total of 6 6/32. They were little changed today as of 12:19 p.m. in Tokyo. 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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