10-Year Gilts Break 118.96/92 To Target 118.68

Published 12/13/2012, 02:12 AM
10 Year Gilt
Gilts broke 118.96/92 to target 118.68 next and we bottomed just above here at 118.71. We could see a bounce today but will need to beat 118.92/96 and then yesterday’s high at 119.07 to test resistance at 119.35. If we manage a push through here, 119.59 could hold this bounce but above here look for 119.79/82 possibly a retest of 119.94/97. Attempt shorts with a stop above 120.05. If we can continue higher we run in to difficult resistance at 120.30/35 but a break above 120.45 targets 120.64.

Decent support remains at 118.71/68 today but failure here however targets 118.56 then 118.33 to exit shorts and look for a rally in to the end of the week.

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