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(H1) Approaching Key Support

GILT TECHS
  • RES 4: 135.96/99 High Jan 4 / High Dec 11 and the bull trigger
  • RES 3: 135.73 High Jan 5
  • RES 2: 135.16 High Jan 6
  • RES 1: 134.82 20-day EMA
  • PRICE: 134.19 @ Close Jan 11
  • SUP 1: 134.07 Low Jan 11
  • SUP 2: 134.01 Low Dec 24 and key support
  • SUP 3: 133.63 Low Dec 4
  • SUP 4: 133.52 Low Dec 2

Gilt futures traded lower again yesterday. The contract found resistance last week at 135.96, Jan 4 high and has since traded sharply lower. The sell-off has resulted in a break of support at 134.89, Dec 30 low. The move lower highlights a bearish short-term risk with the focus on 134.01 next, Dec 24 low. A break of this level would reinforce a bearish argument and open 133.52, Dec 2 low. On the upside, initial resistance is at 134.82.

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