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(H1) Sharply Lower

GILT TECHS
  • RES 4: 137.00 Round number resistance
  • RES 3: 136.48 1.00 proj of the Dec 2 - 11 rally from the Dec 24 low
  • RES 2: 135.96/99 High Jan 4 / High Dec 11 and the bull trigger
  • RES 1: 135.16 High Jan 6
  • PRICE: 134.35 @ Close Jan 7
  • SUP 1: 134.30 Low Jan 7
  • SUP 2: 134.01 Low Dec 24 and key support
  • SUP 3: 133.63 Low Dec 4
  • SUP 4: 133.52 Low Dec 2

Gilt futures started the year on a firm note trading to a high just short of key resistance at 135.99, Dec 11 high. The contract however has reversed lower from Monday's high of 135.96 and this week's weakness has resulted in a break of support at 134.89, Dec 30 low. The move lower highlights a bearish intraday risk with the focus on 134.01 next, the Dec 24 low. A break of this level would open 133.52, the Dec 2 low. Resistance is at 135.16.

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