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Price Signal Summary - Gilts Remain Vulnerable

OUTLOOK
  • In the FI space, Bund futures continue to trade closer to recent lows and remain in bear mode. Support at 134.99, the May 10 low, has been breached and this strengthens the bearish theme. The focus is on key support at 133.10, the Apr 19 low. On the upside, key short-term resistance has been defined at 137.29, the May 11 high. Initial resistance is 134.97, the 20-day EMA.
  • The primary trend direction in Gilt futures remains down following the recent acceleration of the bear cycle. Sights are set on 94.76 next, 76.4% of the Oct 12 - Nov 24 2022 rally (cont). Initial resistance is at Wednesday’s intraday high of 96.74. Note that the trend is oversold and a corrective rebound would allow the oversold condition to unwind.

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