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(H2) Needle Still Points South

GILT TECHS
  • RES 4: 125.93 High Dec 22
  • RES 3: 125.34 20-day EMA
  • RES 2: 125.18 High Dec 31
  • RES 1: 124.17 Low Nov 24 and recent breakout level
  • PRICE: 123.36 @ 11:05 Jan 6
  • SUP 1: 123.17 3.236 proj of the Dec 8 - 16 - 20 price swing
  • SUP 2: 123.00 Round number support
  • SUP 3: 122.81 3.50 proj of the Dec 8 - 16 - 20 price swing
  • SUP 4: 122.32 3.0% Lower Bollinger Band

Gilt futures remain in a downtrend and the contract is under pressure again today, having gapped lower at the open. 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 signalling scope for further downside. The focus is on the 123.00 handle next. Initial resistance is seen at 124.17.

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