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(H1) Needle Points North

GILT TECHS
  • RES 4: 135.39 76.4% retracement of the Jan 4 - 12 downleg
  • RES 3: 135.16 High Jan 6
  • RES 2: 135.04 61.8% retracement of the Jan 4 - 12 downleg
  • RES 1: 134.95/96 High Jan 26 / High Jan 7
  • PRICE: 134.69 @ Close Jan 27
  • SUP 1: 134.41 Low Jan 25
  • SUP 2: 134.14 Low Jan 25
  • SUP 3: 133.79 Low Jan 21
  • SUP 4: 133.55 Low Jan 11 and the bear trigger

Gilt futures rallied again yesterday and despite the pullback from session highs of 134.95, a bullish outlook remains intact. Futures have cleared resistance defined by the 20- and 50-day EMAs and this reinforces a bullish case. Scope is seen for a climb towards 135.04 next, the 61.8% retracement of the Jan 4 - 12 downleg. Initial support is seen at yesterday's low of 134.41 ahead of 134.14, the Jan 25 low.

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