The opportunities in UK Gilts and US bonds
12 August 2011
MONTHLY UK GILT CHART
The market has overcome the important Pivot at 124.95 from 2002 - and where it has failed twice before in 2009 and 2010.
Final confirmation of the breakthrough requires a monthly close of course, but the evidence is mounting not least because of the completion of a large bull continuation Triangle in the weekly charts at CLOSE OF BUSINESS TODAY 12TH August.
WEEKLY UK GILT CHART
The detail of the 2011 continuation triangle: A close above the upper diagonal at 127.93 this week confirmed the following week suggests moves up as far as 141 minimum.
WEEKLY UK GILT CHART
The market has smashed up through the recent All Time High of 126.93 in good volume and open interest.
MONTHLY TNOTE CHART
The market has smashed up through the succession of Prior Highs from 1993.
A close on at the end of the month above the 128-01/128-22.5n looks likely, which will fuel moves higher still by established powerful support beneath the market
WEEKLY TNOTE CHART
This is close to a continuation Triangle. but not quite since there is a lack of correct alternation.
But the essential characteristic of Prior Highs acting as good ratcheting support beneath the market holds good.
Watch for a close on the week above 128-22.5.
DAILY TNOTE CHART
The market Looks powerfully set up, the small consolidation above the critical band of prior Highs looks set up for a further bull push – having the appearance of a pennant.
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