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Price Signal Summary - Bull Cycle In Gilts Remains In Play

  • In the FI space, Bund futures maintain a firmer short-term tone following last week’s continuation higher. The break on Nov 29 above 132.09, the Nov 17 high, confirmed a resumption of the uptrend. That break higher maintains the bullish price sequence of higher highs and higher lows and sights are on the 136.00 handle next. Initial firm support lies at 132.98, the 20-day EMA. A short-term pullback would be considered corrective. First support lies at 133.91, the Dec 4 low.
  • The latest pullback in Gilt futures appears to have been a correction and today’s gains reinforces this theme. Last week’s break of resistance at 98.05, the Nov 17 high, also reinforces bullish conditions and confirms a resumption of the current uptrend. The break higher paves the way for a climb towards 99.41, a Fibonacci projection. Initial firm support lies at 96.10, the Nov 30 low. First support lies at 97.02, the 20-day EMA.

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