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Price Signal Summary - Bear Cycle In Gilts Extends

OUTLOOK
Homepagemarkets-real-timeBulletMarketsFixed Income BulletsForeign Exchange Bullets
  • In the FI space, a bear cycle in Bund futures, that started off the May 16 high of 132.11, remains in play. Today’s move to a fresh cycle low reinforces this theme. The contract has breached the key support and bear trigger at 129.53, the Apr 25 low. This confirms a resumption of the downtrend that started late December last year and opens 129.26, the 1.618 projection of the Mar 8 - 18 - 27 price swing. Initial resistance is at 130.69, the 20-day EMA.
  • Gilt futures remain soft following the recent strong sell-off. The contract has traded through the 97.00 handle and breached last week’s low at 96.60 (May 24). The extension suggests scope for 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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  • In the FI space, a bear cycle in Bund futures, that started off the May 16 high of 132.11, remains in play. Today’s move to a fresh cycle low reinforces this theme. The contract has breached the key support and bear trigger at 129.53, the Apr 25 low. This confirms a resumption of the downtrend that started late December last year and opens 129.26, the 1.618 projection of the Mar 8 - 18 - 27 price swing. Initial resistance is at 130.69, the 20-day EMA.
  • Gilt futures remain soft following the recent strong sell-off. The contract has traded through the 97.00 handle and breached last week’s low at 96.60 (May 24). The extension suggests scope for 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.