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(H2) Bearish Extension

GILT TECHS
  • RES 4: 123.58 High Jan 24, 50-day EMA and a key resistance
  • RES 3: 123.23 High Jan 26
  • RES 2: 122.33/56 20-day EMA / High Feb 2
  • RES 1: 121.59 High Feb 4
  • PRICE: 120.28 @ Close Feb 8
  • SUP 1: 120.13 Low Feb 8
  • SUP 2: 120.00 Psychological round number
  • SUP 3: 119.55 2.236 proj of the Jan 13 - 19 - 24 price swing
  • SUP 4: 119.36 Low Oct 10, 2018 (cont)

Gilt futures remain soft and the contract resumed its downleg yesterday. The recent Jan 31 break of 121.93, Jan 19 low, confirmed a resumption of the downtrend, reinforcing bearish conditions and maintaining a bearish price sequence of lower lows and lower highs. MA conditions remain in a bear mode, highlighting current sentiment. The focus is on the 120.00 psychological handle. Firm S/T resistance is seen at 122.56, Feb 2 high.

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