(H2) Trend Conditions Remain Bullish

• RES 4: 129.00 76.4% retracement of the Aug - Oct downleg (cont)
• RES 3: 128.18 High Sep 10 / 14 (cont)
• RES 2: 127.94/128.00 61.8% of Aug - Oct move (cont) / High Aug 31
• RES 1: 127.33/67 High Dec 16 / High Dec 8
• PRICE: 126.88 @ Close Dec 17
• SUP 1: 126.34 Low Dec 16
• SUP 2: 125.44 Low Nov 26 and gap high
• SUP 3: 124.94 High Nov 25 and gap low
• SUP 4: 124.48 Low Nov 25

Gilt futures traded sharply lower Dec 16, down to 126.34 before support arrived to push price higher. The move lower resulted in a print below the 20-day EMA at 126.56. A clear break of this EMA would signal potential for a deeper sell-off below the 126.00 handle. On the upside the recent high of 127.67 on Dec 8 marks the bull trigger. The trend remains up and a break of this hurdle would confirm a resumption of the uptrend.