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MNI DAILY TECHNICAL ANALYSIS - Gilt Trend Remains Bearish

Price Signal Summary – Gilt Trend Remains Bearish

  • The trend condition in S&P E-Minis remains bullish and the contract is trading just below its recent highs. A key short-term support has been defined at 5724.25, the Nov 4 low. The latest rally resulted in a breach of the bull trigger at 5927.25, Oct 17 high. A bearish condition in Eurostoxx 50 futures remains intact and this week’s extension reinforces current conditions. The sell-off confirms a resumption of the downtrend that started Sep 30.
  • GBPUSD traded sharply lower again Wednesday, extending the current downtrend. Recent weakness resulted in a breach of support at 1.2834, the Nov 6 low. The clear break confirmed a resumption of the downtrend and the subsequent sell-off reinforces the bearish theme. The USDJPY trend condition is unchanged, it remains bullish and the pair continues to climb. This week’s gains have resulted in a breach of resistance at 154.71, the Nov 07 high. A bullish theme in EURJPY remains intact and the latest pullback appears corrective. The 50-day EMA lies at 163.44. It has been pierced. A clear break of it would signal scope for a deeper retracement and expose 161.85, the Oct 17 low. Moving average studies are in a bull-mode set-up.
  • The long-term trend condition in Gold is unchanged, it remains bullish and the latest pullback appears corrective. However, recent weakness has resulted in a breach of the 20- and 50-day EMAs. A bearish theme in WTI futures remains intact and the move lower from the Nov 7 high, reinforces current conditions. The move down exposes $65.99, the Oct 1 low, and $64.16, the Sep 10 low and key support.
  • Bund futures have pulled back from their recent highs. Recent short-term gains are - for now - considered corrective. The trend direction is down and the Nov 6 break to a fresh cycle low reinforces this theme. The 131.00 handle has been cleared. The trend condition in Gilt futures is unchanged, it remains bearish. Short-term gains are considered corrective. The contract has recently breached 92.99, a 2.00 projection of the Sep 17 - 30 Oct 1 price swing.

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Price Signal Summary – Gilt Trend Remains Bearish

  • The trend condition in S&P E-Minis remains bullish and the contract is trading just below its recent highs. A key short-term support has been defined at 5724.25, the Nov 4 low. The latest rally resulted in a breach of the bull trigger at 5927.25, Oct 17 high. A bearish condition in Eurostoxx 50 futures remains intact and this week’s extension reinforces current conditions. The sell-off confirms a resumption of the downtrend that started Sep 30.
  • GBPUSD traded sharply lower again Wednesday, extending the current downtrend. Recent weakness resulted in a breach of support at 1.2834, the Nov 6 low. The clear break confirmed a resumption of the downtrend and the subsequent sell-off reinforces the bearish theme. The USDJPY trend condition is unchanged, it remains bullish and the pair continues to climb. This week’s gains have resulted in a breach of resistance at 154.71, the Nov 07 high. A bullish theme in EURJPY remains intact and the latest pullback appears corrective. The 50-day EMA lies at 163.44. It has been pierced. A clear break of it would signal scope for a deeper retracement and expose 161.85, the Oct 17 low. Moving average studies are in a bull-mode set-up.
  • The long-term trend condition in Gold is unchanged, it remains bullish and the latest pullback appears corrective. However, recent weakness has resulted in a breach of the 20- and 50-day EMAs. A bearish theme in WTI futures remains intact and the move lower from the Nov 7 high, reinforces current conditions. The move down exposes $65.99, the Oct 1 low, and $64.16, the Sep 10 low and key support.
  • Bund futures have pulled back from their recent highs. Recent short-term gains are - for now - considered corrective. The trend direction is down and the Nov 6 break to a fresh cycle low reinforces this theme. The 131.00 handle has been cleared. The trend condition in Gilt futures is unchanged, it remains bearish. Short-term gains are considered corrective. The contract has recently breached 92.99, a 2.00 projection of the Sep 17 - 30 Oct 1 price swing.

FOREIGN EXCHANGE    

Keep reading...Show less