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(M2) Downtrend Remains Intact

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: 121.20/122.35 20-day EMA / High Apr 4
  • PRICE: 119.92 @ Close Apr 8
  • SUP 1: 119.55 Low Apr 8
  • SUP 2: 119.36 Low Oct 10 2018 (cont)
  • SUP 3: 118.93 Low Apr 26 2016 (cont)
  • SUP 4: 118.05 0.618 proj of the Mar 1 - 28 - Apr 4 price swing

Gilt futures found resistance last week at 122.35, the Apr 4 high. The pullback means price failed to remain above the 20-day EMA, and that an important resistance at 122.72, the Mar 18 high, also remains intact. The broader trend direction is down and this was confirmed on Friday as prices traded to a fresh trend low of 119.55. The move confirms a resumption of the downtrend and opens 119.36 next. Clearance of 122.35 is required to signal a base.

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