May 28, 2024 11:08 GMT
Price Signal Summary - Bear Cycle In Bund Futures Remains In Play
OUTLOOK
- In the FI space, a bear cycle in {GE} Bund futures, that started off the May 16 high of 132.11, remains in play. The recent extension lower has exposed the key support and bear trigger at 129.53, the Apr 25 low. Clearance of this level would confirm a resumption of the downtrend that started late December last year. This would open 129.26, the 1.618 projection of the Mar 8 - 18 - 27 price swing. Initial resistance is at 130.77, the 20-day EMA.
- Gilt futures remain soft following the recent strong sell-off, and despite the latest bounce. The contract has traded through the 97.00 handle and a continuation lower would suggest scope for an extension towards 96.00, and a support around 95.87, the May 1 low. Initial resistance to watch is 97.44, the May 23 high. A break of this level would allow for a stronger near-term recovery, potentially towards resistance at 98.12, the May 21 high.
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