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(H1) Resistance Seen At The Key EMAs

GILT TECHS
  • RES 4: 135.16 High Jan 6
  • RES 3: 134.96 High Jan 7
  • RES 2: 134.64/69 20- and 50-day EMAs
  • RES 1: 134.57 High Jan 14
  • PRICE: 134.54 @ Close Jan 15
  • 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 likely a correction. A bearish theme follows recent selling pressure that has seen the contract clear support at 134.01 this week, Dec 24 low. This signals scope for a move towards 133.52 next, Dec 2 low. On the upside, initial firm resistance is seen at 134.64/69, the 20- and 50-day EMAs. A break would highlight scope for a stronger bounce instead.

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