Gilt: Upside potential is limited - Natixis

The weak daily volatility suggests that upside potential for Gilt is limited in the short term and under these conditions, a recovery back above 128.91-129 (upper band of daily Bollinger) is unlikely, suggests Micaella Feldstein, Research Analyst at Natixis.

Key quotes

“Rather, caution is in order, with an eye on the support around 127.34127.53 (lower band of daily Bollinger). A break below these last levels would open the way for a more pronounced decline towards 126.91 (weekly Bollinger moving average), possibly towards 126.40-126.60 (Fibonacci projections). Resistance levels are located at 128.19, around 128.91-129, at 129.45 and around 130130.20.”

“Resistance at 128.91-129 seems toppish. Watch out rather for pullbacks towards the support around 127.34-127.53.”