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Price Signal Summary - Gilts Remains Below Last Week's High

OUTLOOK
  • In the FI space, Bund futures remain in a short-term uptrend and are trading closer to its recent highs. Attention is on resistance at the 50-dma of 130.22. Clearance of this level would strengthen bullish conditions and pave the way for a climb towards 131.33, 76.4% of the Sep 1 - Oct 4 downleg. Initial support to watch lies at 128.61, the Oct 10 low. A break would signal a potential top. Note that recent gains are considered corrective.
  • Gilt futures faced resistance last Thursday and 95.66, the Oct 12 high, has been defined as a key short-term hurdle for bulls. A break of this level would confirm a resumption of the recent rally and expose 96.71, the Sep 20 high. Support to watch lies at 93.95, the Oct 11 low. A breach would highlight a stronger reversal and open 93.04, the Oct 10 low. Key support and the bear trigger is far off at 91.47, the Aug 17 low.

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