11/19 $Benchmark First Abu Dhabi Bank (FAB) investor calls
$16.6B Priced Tuesday, $42.25B total/wk
OUTLOOK: Price Signal Summary - Support In Gilts Remains Intact For Now
Nov-19 12:23
In the FI space, a bear cycle in Bund futures remains intact and the contract is trading just ahead of its recent lows. Support at 128.52, the 76.4% retracement of the Sep 25 - Oct 17 bull leg, has been pierced. A clear break of this handle would signal scope for an extension towards 128.25, the Oct 7 low. Key short-term resistance is seen at 129.40, the Nov 13 high. Clearance of this hurdle would signal a reversal. First resistance is 129.09, the 50-day EMA.
The recent sharp pullback in Gilt futures still appears corrective and the next key support to watch lies at 91.82, the Sep 11 high and a former key breakout level. Moving average studies remain in a bull-mode position, highlighting a dominant uptrend. First resistance to watch is 92.85, the Nov 14 high. For bears, a break of 91.82, the Sep 11 high, would strengthen a bear theme and open 91.67, a 50.0% retracement of the Sep 3 - Nov 4 bull leg.