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(H3) Bullish Outlook

GILT TECHS
  • RES 4: 109.28 2.382 proj of the Jan 23 - 25 - 30 price swing
  • RES 3: 108.96 2.236 proj of the Jan 23 - 25 - 30 price swing
  • RES 2: 108.44 2.00 proj of the Jan 23 - 25 - 30 price swing
  • RES 1: 107.78/108.00 High Feb 2 / Round number resistance
  • PRICE: 107.03 @ Close Feb 3
  • SUP 1: 105.99 High Jan 25 and a recent breakout level
  • SUP 2: 105.09 Low Feb 2
  • SUP 3: 104.04 Low Jan 30 and a key near-term support
  • SUP 4: 103.21 Low Jan 17

Gilt futures traded sharply higher last Thursday and in the process cleared 106.00 and more importantly breached 107.06, the Nov 24 and a key resistance. The break higher confirms a resumption of the uptrend and maintains the current bullish price sequence of higher highs and higher lows. The focus is on the 108.00 handle next. Initial firm support to watch lies at 104.04, the Jan 30 low. A break of this level would highlight a short-term top.

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