Gilts - Temporarily Bearish
28th July 2015
Against a background of positive signals for sentiment for Gilts this week, yesterday initially saw last week’s strong gains extend. But this upside, reaching to within 5 tics of our 117.16 weekly target, stalled and gave back the gains into the close.
A lack of net movement does reflect a degree of investor indecision but it is the failure to maintain the highs and close with a sharp upside rejection (a Bearish Inverted Hammer) that leaves intraday signals for sentiment mildly, and temporarily, negative.
Therefore our call for Gilts is Bearish but leaving room to Sell a Rally to 116.96. The risk is 117.16, July 9th high, with an immediate target of 116.53. A move through that point then exposes sentiment to 116.33, Friday’s low, and 116.04, a projected Fibonacci point.
