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(H4) Bearish Extension

GILT TECHS
  • RES 4: 103.33 High Dec 29
  • RES 3: 101.98 High Jan 3
  • RES 2: 100.35 20-day EMA
  • RES 1: 99.71 Low Jan 16 and gap high on the daily chart
  • PRICE: 98.33 @ Close Jan 17
  • SUP 1: 98.00 Low Jan 17
  • SUP 2: 97.39 Low Dec 11 and a key support
  • SUP 3: 96.67 Low Dec 5
  • SUP 4: 96.10 Low Nov 30

Gilt futures gapped lower yesterday and cleared support at 99.60, the Jan 5 low. This reinforces a bearish theme and confirms a resumption of the downtrend that started Dec 27. The contract has also traded through support at 97.97, the Dec 6 high signalling scope for an extension towards 97.39, the Dec 11 low. On the upside, firm resistance to watch is at 100.35, the 20-day EMA. A clear break of the average would ease bearish pressure.

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