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(H2) Corrective Bounce

GILT TECHS
  • RES 4: 125.18 High Dec 31
  • RES 3: 124.59 20-day EMA
  • RES 2: 124.17 Low Nov 24 and recent breakout level
  • RES 1: 123.73 Low Jan 5 and gap high
  • PRICE: 123.35 @ Close Jan 12
  • SUP 1: 122.78 Low Jan 10
  • SUP 2: 122.66 3.618 proj of the Dec 8 - 16 - 20 price swing
  • SUP 3: 122.46 3.764 proj of the Dec 8 - 16 - 20 price swing
  • SUP 4: 121.45 3.0% Lower Bollinger Band

Short-term gains in Gilt futures are considered corrective. The downtrend remains intact - last week’s sell-off resulted in a break of support at 124.35, Dec 29 low and 124.17, Nov 24 low. The move below the latter support has strengthened bearish conditions. Moving average conditions are also in a bear mode, reinforcing current conditions. The focus is on the 122.66 next, a Fibonacci projection. Initial resistance is seen at 123.73.

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