April 22, 2024 11:10 GMT
Price Signal Summary - Bunds Bear Cycle Extends
OUTLOOK
- In the FI space, the trend outlook in Bund futures remains bearish. The contract is trading lower today and has starting the week on a bearish note. Key support at 131.23, the Feb 29 low, has been cleared. This confirms a resumption of the downtrend. Attention is on 130.25,1.236 projection of the Mar 8 - 18 - 27 price swing. On the upside, initial firm resistance is at 133.05, the Apr 12 high. Short-term gains would be considered corrective. First resistance is at 131.97, the 20-day EMA.
- A bearish theme in Gilt futures remains intact and the contract traded lower last week, delivering a fresh cycle low of 96.01 on Apr 17. The move down maintains the bearish price sequence of lower lows and lower highs. Furthermore, moving average studies have crossed and highlight a bear-mode set-up. Scope is seen for an extension towards 95.96 and 95.41, the 1.764 and 2.00 projections of the Mar 12 - 15 - 22 price swing. Initial firm resistance is 98.23, the Apr 12 high.
170 words