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(H2) Needle Still Points South

GILT TECHS
  • RES 4: 126.76 High Dec 21
  • RES 3: 125.93 High Dec 22
  • RES 2: 125.34 20-day EMA
  • RES 1: 124.46/125.18 High Jan 4 / High Dec 31
  • PRICE: 123.92 @ Close Jan 5
  • SUP 1: 123.73 2.764 proj of the Dec 8 - 16 - 20 price swing
  • SUP 2: 123.48 3.00 proj of the Dec 8 - 16 - 20 price swing
  • SUP 3: 123.00 Round number support
  • SUP 4: 122.32 3.0% Lower Bollinger Band

Gilt futures remain in a downtrend and the contract traded lower again Wednesday. This week’s sell-off has resulted in a break of support at 124.35, Dec 29 low and 124.17, Nov 24 low. The move below the latter support strengthens bearish conditions and opens 123.48, a Fibonacci projection. Resistance is seen at 125.18, the Dec 31 high and 125.34, the 20-day EMA. Clearance of this zone would ease bearish pressure.

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