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(M2) Bear Flag

GILT TECHS
  • RES 4: 124.60 High Mar 8
  • RES 3: 123.52 High Mar 9
  • RES 2: 122.72 High Mar 18 and a key near-term resistance
  • RES 1: 122.01 20-day EMA
  • PRICE: 120.64 @ Close Mar 25
  • SUP 1: 120.26 Low Mar 24
  • SUP 2: 120.00 Round number support
  • SUP 3: 119.75 123.6% retracement of the Feb 15 - Mar 1 climb
  • SUP 4: 118.92 138.2% retracement of the Feb 15 - Mar 1 climb

Trend conditions in Gilt futures remain bearish and the recent consolidation appears to be a bear flag - a continuation pattern that reinforces current conditions. Last week’s move lower resulted in a break of key support and the bear trigger, at 121.10, Feb 6 low. This marks a resumption of the broader downtrend and opens 120.00. Price action has defined a key short-term resistance at 122.72, Mar 18 high. A break is required to suggest a base.

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