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(H2) Downtrend Accelerates

GILT TECHS
  • RES 4: 124.46 High Jan 4
  • RES 3: 123.87/124.17 20-day EMA / Low Nov 24
  • RES 2: 123.79 High Jan 13 and a key near-term resistance
  • RES 1: 122.78 Low Jan 10 and recent breakout level
  • PRICE: 122.28 @ Close Jan 19
  • SUP 1: 121.93 Low Jan 19
  • SUP 2: 121.61 Low Nov 13 2018 (cont)
  • SUP 3: 121.12 Low Nov 8 2018 (cont)
  • SUP 4: 121.01 3.0% Lower Bollinger Band

Gilt futures traded sharply lower again Wednesday. Bearish trend conditions remain intact and this week’s move lower has resulted in a break of former support at 122.78, Jan 10 low. This confirms a resumption of the downtrend and maintains a bearish price sequence of lower lows and lower highs. The MA set-up is in a bear mode too. The focus is on 121.61 next, the Nov 13 2018 low (cont). Firm resistance is seen at 123.87, the 20-day EMA.

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