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(M2) Bearish Focus

GILT TECHS
  • RES 4: 122.72 High Mar 18
  • RES 3: 122.35 High Apr 4
  • RES 2: 121.84 50.0% retracement of the Mar 1 - May 9 bear leg
  • RES 1: 119.95/121.07 High May 19 / High May 12
  • PRICE: 118.88 @ Close May 20
  • SUP 1: 118.25 Low May 11
  • SUP 2: 116.87 Low May 9 and the bear trigger
  • SUP 3: 116.35 Low Dec 30 2015 (cont)
  • SUP 4: 115.40 1.00 proj of the Mar 1 - 28 - Apr 4 price swing

The primary trend direction in Gilt futures remains down. The pullback from recent highs just above the 50-day EMA, is a bearish development and suggests that the correction between May 9 - 12 is over. If correct, a continuation lower would open the key support and bear trigger at 116.87, May 9 low. Key short-term resistance has been defined at 121.07, May 12 high, where a break is required to reinstate a short-term bullish bullish theme.

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