November 20, 2023 12:05 GMT
Price Signal Summary - Trend Structure In Gilts Remains Bullish
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- In the FI space, Bund futures maintain a firmer short-term tone following last week’s gains and short-term pullbacks are considered corrective. Price has breached resistance at 130.93, the Nov 9 high, to confirm a resumption of the uptrend that started on Oct 4. The move higher opens 132.13, 1.382 projection of the Oct 4 - 12 - 23 price swing. Firm support to watch is 129.35, the Nov 7 / 13 low. A breach of this level would highlight a possible reversal. Initial support lies at 130.36, the Nov 15 low.
- Gilt futures maintain a firmer tone and last week’s gains reinforce current bullish conditions. Resistance at 96.71, the Sep 20 high, has been breached. This paves the way for a climb towards 98.98 next, the May 22 high on the continuation chart, and potentially 99.26, 50.0% of the Mar 20 - Oct 23 downleg (cont). On the downside, key short-term support has been defined at 94.58, the Nov 13 low. First support lies at 95.93, the Nov 15 low.