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(H4) Watching Resistance

GILT TECHS
  • RES 4: 101.98 High Jan 3
  • RES 3: 100.81 High Jan 5
  • RES 2: 100.00 Round number resistance
  • RES 1: 99.39 20-day EMA
  • PRICE: 99.02 @ Close Jan 29
  • SUP 1: 97.57 Low Jan 25
  • 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

The trend needle in Gilt futures continues to point south and recent gains appear - for now - to be a correction. The contract has cleared support at 99.60, the Jan 5 low. This confirmed a resumption of the downtrend that started Dec 27, signalling scope for a continuation lower towards 97.39, the Dec 11 low. Firm resistance to watch is 99.39, the 20-day EMA. A clear break of the average would ease bearish pressure.

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