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OUTLOOK: Price Signal Summary - Bear Cycle In Gilts Remains Intact

OUTLOOK
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  • In the FI space, Bund futures continue to trade closer to their latest lows. Recent weakness has resulted in a move through both the 20- and 50-day EMAs and this undermines a recent bullish outlook. A continuation would further strengthen a developing bearish threat. This would open 132.65, the Sep 2 low. Initial resistance is at 134.38, the 20-day EMA. A clear break of this average is required to signal a possible reversal.
  • A bear threat in Gilt futures remains present. The Oct 4 impulsive sell-off, and this week’s move lower, reinforces a bearish theme. The contract has traded through support at 98.11, the Sep 2 low and a bear trigger. The break strengthens the downtrend, signalling scope for a deeper retracement. 96.23, the 1.00 projection of the Sep 17 - 30 - Oct 1 price swing, has been pierced. This exposes 96.00. Initial firm resistance is seen at 98.11, the Sep 2 low.
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  • In the FI space, Bund futures continue to trade closer to their latest lows. Recent weakness has resulted in a move through both the 20- and 50-day EMAs and this undermines a recent bullish outlook. A continuation would further strengthen a developing bearish threat. This would open 132.65, the Sep 2 low. Initial resistance is at 134.38, the 20-day EMA. A clear break of this average is required to signal a possible reversal.
  • A bear threat in Gilt futures remains present. The Oct 4 impulsive sell-off, and this week’s move lower, reinforces a bearish theme. The contract has traded through support at 98.11, the Sep 2 low and a bear trigger. The break strengthens the downtrend, signalling scope for a deeper retracement. 96.23, the 1.00 projection of the Sep 17 - 30 - Oct 1 price swing, has been pierced. This exposes 96.00. Initial firm resistance is seen at 98.11, the Sep 2 low.