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(M2) Corrective Cycle Likely To Extend

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: 121.07 High May 12
  • PRICE: 120.24 @ Close May 13
  • SUP 1: 119.11 20-day EMA
  • SUP 2: 118.25/116.87 Low May 11 / 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 trend direction in Gilt futures remains down and last week’s climb is considered corrective. Thursday’s move higher however resulted in a break of resistance at 119.79, the Apr 25 high. This signals potential for a stronger short-term corrective phase and opens 121.84 next, a Fibonacci retracement. On the downside, key support has been defined at 116.87, the May 9 low. This level also represents the bear trigger.

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