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(H1) Fresh Trend Low Print

GILT TECHS
  • RES 4: 133.55 Low Dec 1 and a recent breakout level
  • RES 3: 132.67 High Feb 11
  • RES 2: 131.73 Low Feb 8/12 and gap high on the daily chart
  • RES 1: 131.49 HIgh Feb 16 and gap low on the daily chart
  • PRICE: 130.85 @ Close Feb 18
  • SUP 1: 130.49 2.764 proj of the Dec 11 - 24 sell-off from Jan 4 high
  • SUP 2: 130.18 Low Mar 19, 2020 (cont)
  • SUP 3: 130.00 Psychological round number
  • SUP 4: 129.55 3.236 proj of the Dec 11 - 24 sell-off from Jan 4 high

Gilt futures traded to a fresh low of 130.49 yesterday. Further weakness is likely with a bearish cycle continuing to dominate. The move to fresh lows this week reinforces the bearish theme and confirms a resumption of the downtrend that started early August last year. With further selling pressure likely near-term, the focus is on the 130.00 psychological level next. Initial resistance is at 131.49, Feb 16 high.

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