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(H2) Recovering Off Contract Lows

GILT TECHS
  • RES 4: 123.07 50-day EMA
  • RES 3: 122.56 High Feb 2
  • RES 2: 121.59 High Feb 4 and the 20-day EMA
  • RES 1: 120.96 High Feb 8
  • PRICE: 120.72 @ Close Feb 17
  • SUP 1: 119.32 Low Feb 16
  • SUP 2: 119.28 2.382 proj of the Jan 13 - 19 - 24 price swing
  • SUP 3: 119.18 1.0% 10-dma envelope
  • SUP 4: 119.06 2.500 proj of the Jan 13 - 19 - 24 price swing

The medium-term trend condition in Gilt futures is unchanged, but markets are currently undergoing a corrective rally, putting prices back toward recent highs of 120.96. A return to the downside would reinforce bearish conditions, with moving averages pointing south too. With the 120.00 psychological handle cleared, the focus is on 119.28 next, a Fibonacci projection. Firm S/T resistance is seen at 120.96.

MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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