BUNDS: The Busiest Day of the Week is coming up

• RES 4: 122.35 2.500 proj of the May 14 - 20 - 21 price swing
• RES 3: 122.00 Round number resistance 
• RES 2: 121.46/121.73 High Jul 22 / High Jun 13 and the bull trigger 
• RES 1: 120.92 High Jul 24  
• PRICE: 120.77@ Close Jul 29
• SUP 1: 119.59 Low Jul 25 and key short-term support         
• SUP 2: 119.48 Low May 26 
• SUP 3: 118.87 Low May 21  
• SUP 4: 118.51 Low May 14 and key support 

The primary trend condition in BTP futures remains bullish and recent weakness appears to have been a correction. A doji candle on Jul 25, and Monday’s gains, highlight a potential bullish reversal. A continuation higher would open 121.46, the Jul 22 high and 121.73, the Jul 13 high and a bull trigger. Clearance of this latter level would confirm a resumption of the uptrend. Key short-term support has been defined at 119.59, the Jul 25 low.

• RES 4: 93.00 Round number resistance     
• RES 3: 92.74 61.8% retracement of the Jul 1 - 18 bear leg     
• RES 2: 92.42 50.0% retracement of the Jul 1 - 18 bear leg   
• RES 1: 91.82/92.15 20-day EMA / High Jul 22
• PRICE: 91.73 @ Close Jul 29 
• SUP 1: 91.08 Low Jul 18 and the bear trigger   
• SUP 2: 90.97 76.4% retracement of the May 22 - Jul 1 bull leg
• SUP 3: 90.59 Low May 29   
• SUP 4: 90.46 Low May 23        

Gilt futures continue to trade below their recent highs. A rally on Jul 22 resulted in a break of the 20-day EMA. A resumption of gains would signal scope for a climb towards 92.42, the 50.0% retracement of the Jul 1 - 18 bear leg. On the downside, key support and the bear trigger has been defined at 91.08, the Jul 18 low. Clearance of this level would resume the bear cycle that started Jul 1.

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