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Price Signal Summary - Gilt Futures Remain Above Key Support

OUTLOOK
  • In the FI space, Bund futures are trading closer to their recent lows. The broader trend direction is up and the latest pullback is considered corrective. Moving average studies have crossed, to highlight a bull mode condition. This signals a stronger reversal. A resumption of gains would open 143.00. Firm support to watch has been defined at 139.13, Nov 28 low.
  • Gilt futures traded lower again Wednesday, extending the pullback from last week’s highs. The break of support at 104.79, Nov 30 low, exposes the firmer support at 103.54, the Nov 21 low. Clearance of this level would strengthen a bearish threat and signal scope for a deeper pullback. On the upside, the bull trigger is unchanged at 107.06, the Nov 24 high.

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