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Price Signal Summary - Trend Outlook In Gilts Remains Bullish

OUTLOOK
  • In the FI space, Bund futures remain below last week’s highs. For now, the recent retracement lower appears to be a correction and short-term trend signals highlight a bullish environment. A continuation of today’s gains would refocus attention on key short-term resistance at 135.00, the Jun 27 high and a bull trigger. Clearance of this level would resume the uptrend that started Jul 10. Initial support to watch lies at 132.60, the Jul 17 low.
  • Gilt futures maintain a bullish theme and the contract is trading closer to its recent highs. Last week’s break of resistance at 97.00, the Jun 23 high, and clearance of the 50-dma on the continuation chart, reinforce current positive conditions. A resumption of the uptrend would signal scope for gain towards 99.71, 50.0% retracement of the Mar-Jul downleg (cont). Initial firm support to watch lies at 94.58, the Jul 17 low. First support is at 96.11, the Jul 21 low.

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