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(H1) Key EMAs Remain Intact

GILT TECHS
  • RES 4: 135.73 High Jan 5
  • RES 3: 135.16 High Jan 6
  • RES 2: 134.96 High Jan 7
  • RES 1: 134.58/66 20- and 50-day EMAs
  • PRICE: 134.45 @ Close Jan 19
  • SUP 1: 134.07 Low Jan 14
  • SUP 2: 133.55 Low Jan 11 and the bear trigger
  • SUP 3: 133.52 Low Dec 2 and a key support
  • SUP 4: 133.22 1.382 proj of Dec 11 - 24 decline from Jan 4 high

Gilt futures have recovered off recent lows. The outlook however remains bearish and recent gains are considered a correction. A bearish theme follows selling pressure between Jan 4 - 12 that saw the contract clear support at 134.01, Dec 24 low. This signals scope for a move towards 133.52, Dec 2 low. On the upside, initial firm resistance is seen at 134.58/66, the 20- and 50-day EMAs. A break would allow for a stronger recovery.

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