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Price Signal Summary - Uptrend In Gilts Remains Intact

OUTLOOK
  • In the FI space, Bund futures remain in an uptrend despite the pullback from last week’s high of 140.92 on Oct 28. A bull cycle remains in play following last week’s climb and this resulted in a break of 138.52, Oct 14 high. Scope is seen for a test of the 50-day EMA, at 140.76 - a key resistance. A break of this EMA would strengthen bullish conditions. Support to watch is 137.57, last Thursday’s low.
  • Gilt futures are consolidating closer to its recent highs. Price has recently cleared the 20-day EMA and a key resistance at 100.92, the Oct 4 high. The breach strengthens short-term bullish conditions and opens 105.34 next, the Sep 23 high. Key support has been defined at 95.82, the Oct 21 low. Initial support is at 100.38, the Oct 25 low.

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