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(H1) Selling Pressure Still Dominates

GILT TECHS
  • RES 4: 135.96/99 High Jan 4 / High Dec 11 and the bull trigger
  • RES 3: 135.73 High Jan 5
  • RES 2: 135.16 High Jan 6
  • RES 1: 134.82 20-day EMA
  • PRICE: 133.69 @ Close Jan 12
  • SUP 1: 133.55 Low Jan 11
  • SUP 2: 133.52 Low Dec 2 and a key support
  • SUP 3: 133.22 1.382 proj of Dec 11 - 24 decline from Jan 4 high
  • SUP 4: 132.99 1.500 proj of Dec 11 - 24 decline from Jan 4 high

Gilt futures traded lower again yesterday as the contract extends the selling pressure that has dominated since the reversal off 135.96, the Jan 4 high. Yesterday weakness resulted in a break of support at 134.01, Dec 24 low. This reinforces a bearish theme and paves the way for weakness towards 133.52 next, Dec 2 low. On the upside, initial resistance is at 134.09, yesterday's high.

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