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GILT TECHS: (Z4) Reversal SIgnal

GILT TECHS
  • RES 4: 101.00 Round number resistance
  • RES 3: 100.30 High Aug 14
  • RES 2: 99.85 High Aug 22
  • RES 1: 99.25 High Sep 3    
  • PRICE: 98.91 @ Close Sep 3
  • SUP 1: 98.11 Low Sep 2          
  • SUP 2: 98.00 Round number support   
  • SUP 3: 97.91 1.618 proj of the Aug 14 - 16 - 22 price swing
  • SUP 4: 97.73 1.764 proj of the Aug 14 - 16 - 22 price swing  

Gilt futures recovered Tuesday. The move signals the end of the recent corrective cycle and highlights an early reversal. The trend outlook is bullish and this is reinforced by a bullish moving average set-up on the continuation chart. An extension higher would signal scope for a move  towards the next firm resistance at 99.85, the Aug 22 high. On the downside, clearance of support at 98.11, Sep 2 low, would reinstate the recent bearish theme.

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