September 09, 2024 11:25 GMT
OUTLOOK: Price Signal Summary - Bunds Remain Above Support
OUTLOOK
- In the FI space, Bund futures have gapped lower today and remain below Friday’s 134.81 high. The outlook remains bullish following last week’s rally and note that moving average studies are in a bull-mode position, highlighting an uptrend. A resumption of gains would open 134.95 next, 76.4% of the Aug 5 - Sep 2 bear leg. On the downside, a clear break of the 50-day EMA, at 133.09, would highlight scope for a deeper retracement. First support is 133.70, the 20-day EMA.
- Gilt futures traded higher last week, however, Friday’s price action was volatile. The contract has pierced a key resistance at 100.30, the Aug 14 high. A clear break of this level would confirm a resumption of uptrend and open the 101.00 handle. Moving average studies on the continuation chart remain in a bull-mode position, highlighting a dominant uptrend. Initial firm support to watch lies at 99.08, the 20-day EMA.
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