November 09, 2022 10:49 GMT
Price Signal Summary - Bull Flag Formation In Gilts
OUTLOOK
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- In the FI space, Bund futures remain in a short-term downtrend despite yesterday’s gains. Price has recently breached support at 137.57, the Oct 27 low. The break signals scope for a deeper retracement and attention is on 135.65, the 76.4% retracement of the Oct 21 - 28 bull phase. Initial resistance is at 137.82, the 20-day EMA.
- Gilt futures remain in a short-term uptrend and yesterday’s gains are a positive development. The latest shallow retracement still appears to be a bull flag formation, reinforcing the uptrend. A resumption of gains would signal scope for a climb towards 105.34 next, the Sep 23 high. Key support has been defined at 95.82, the Oct 21 low. A break of this level would be bearish. Initial support is at 99.92, Tuesday’s low.
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