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Price Signal Summary - FI Futures Trend Conditions Remain Bullish

OUTLOOK
  • In the FI space, Bund futures traded higher Wednesday and are firmer today. The contract has breached the recent high of 141.09, the Nov 17 high. This reinforces bullish conditions and confirms a resumption of the current uptrend. Price has also cleared the 50-day EMA at 140.02, highlighting a stronger short-term reversal. Potential is seen for a climb towards 142.87, the Oct 4 high. The 20-day EMA marks initial firm support - it intersects at 139.28.
  • Gilt futures remain bullish and the contract resumed its uptrend yesterday. Fresh cycle highs maintain the current bullish price sequence of higher highs and higher lows and moving averages appear to be highlighting a bull mode set-up. If confirmed this would reinforce the uptrend. The focus is on a climb towards 109.47 next, the Aug 31 low on the continuation chart. Initial firm support lies at 105.00, the Nov 18 low.

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