In association with

Market Update 15th April 2010

The bear potential of UK Gilts

We have been and remain strong bears of the US TNote. But the immediate election
notwithstanding, the UK Gilts too appear to be setting themselves up nicely for the bears…

The Technical Trader’s view:

Long Gilt Continuous 130
124.95 High
Monthly chart
125

116.08 High 120 The market’s pull back

from the double failure
115
gained great bear
momentum when the
105.03 High 110
Prior High at 116.08
105 the completion level of
Low 104.29 Low 104.43 a Double Bottom
100 proved not to be a
support of
95 consequence.

90

85

93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 010 10 11

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This information memorandum has been prepared solely for informational purposes for customers of Seven Days Ahead and is based on publicly available information from sources
believed to be reliable. It is not an offer, recommendation or solicitation to buy or sell, nor is it an official confirmation of terms. No representation is made as to the completeness or
accuracy of any statements or forecasts contained herein and no responsibility or liability is accepted for losses arising from transactions undertaken or investments purchased, sold or
held on its recommendation. Consequently, any persons acting on information contained herein do so entirely at their own risk. Although the opinions contained herein were
considered valid at the time of release, financial markets are subject to rapid and unexpected movements. Seven Days Ahead, its associated companies, their directors, employees,
other customers or connected persons may from time to time undertake transactions or deal in investments mentioned in this information memorandum or have a material interest,
relationship or arrangement in relation to them.
 In association with
Long Gilt Continuous Weekly chart
127
126
125
124
Note too, the Continuation
123 Head and Shoulders pattern
122
121 that completed at the end of
120 2009.
119
118
117
The market has dithered
116
115 beneath that level. (Possibly
High 112.57 114
forming a continuation
113
112 Triangle?)
111
110
109
But the Neckline has certainly
108 proved to be good resistance.
107
106
105 Yet, on the other hand, the
104 bears will note the potential
103
support from the Prior High at
102
O N D 2008 M A M J J A S O N D 2009 M A M J J A S O N D 2010 M A M J J
112.57. Look closer.
Long Gilt Jun 10 Daily Jun 10 chart
116.0

0.0%
The price action has been
115.5
deceptively sideways since the
0.0% 115.0 middle of February.

114.5
Note the repeated bounce off
114.0
the emphatic Fibonacci at the

50.0%
61.8%
? 113.5
113.50 level.

Note too, the importance of any

113.0

breach of that level – that would

112.5 complete a Head and
Shoulders Top which would
112.0
100.0%
send the market on down hard
– certainly with sufficient
20000
10000
impetus to send the market on
1 8 15 22 1 8 15 22 29 6 12 19 26
x10
down through 113.57.
February March April
Watch the price action of the
next few days carefully….

Mark Sturdy
Seven Days Ahead
SEVEN DAYS AHEAD Professional trading guides and recommendations for the World's markets

Authorised and Regulated by the FSA 124 REGENTS PARK ROADLONDON NW18XL TEL +44 (0) 7849 933573
E-MAIL MSTURDY@SEVENDAYSAHEAD.COM WWW.SEVENDAYSAHEAD.COM
This information memorandum has been prepared solely for informational purposes for customers of Seven Days Ahead and is based on publicly available information from sources
believed to be reliable. It is not an offer, recommendation or solicitation to buy or sell, nor is it an official confirmation of terms. No representation is made as to the completeness or
accuracy of any statements or forecasts contained herein and no responsibility or liability is accepted for losses arising from transactions undertaken or investments purchased, sold or
held on its recommendation. Consequently, any persons acting on information contained herein do so entirely at their own risk. Although the opinions contained herein were
considered valid at the time of release, financial markets are subject to rapid and unexpected movements. Seven Days Ahead, its associated companies, their directors, employees,
other customers or connected persons may from time to time undertake transactions or deal in investments mentioned in this information memorandum or have a material interest,
relationship or arrangement in relation to them.