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(H1) Pullback Considered A Correction

GILT TECHS
  • RES 4: 136.34 1.618 proj of Nov 11 - 30 rally from Dec 2 low
  • RES 3: 136.13 1.500 proj of Nov 11 - 30 rally from Dec 2 low
  • RES 2: 135.99 High Dec 14 and the bull trigger
  • RES 1: 135.51 High Dec 14
  • PRICE: 134.76 @ Close Dec 15
  • SUP 1: 134.46 61.8% retracement of the Dec 2 - 11 rally
  • SUP 2: 134.32 Low Dec and key near-term support
  • SUP 3: 134.10 76.4% retracement of the Dec 2 - 11 rally
  • SUP 4: 133.52 Low Dec 2 and key support

Gilt futures continue to trade in a volatile manner and once again traded lower yesterday. Despite the sharp pullback off 135.99, Dec 11 high, the outlook is bullish. Last week's rally confirmed an extension of the uptrend that started mid-Nov. Furthermore the breach of 134.70, Nov 30 high, highlights a bullish price sequence of higher highs and higher lows. Firm support is seen at 134.32, Dec 8 low. A break would expose 133.52, Dec 2 low.

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