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(M2) Trend Needle Still Points South

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: 121.85 20-day EMA
  • PRICE: 120.93 @ Close Mar 29
  • SUP 1: 119.86 Low Mar 28 and the bear trigger
  • SUP 2: 119.75 123.6% retracement of the Feb 15 - Mar 1 climb
  • SUP 3: 119.36 Low Oct 10 2018 (cont)
  • SUP 4: 118.92 138.2% retracement of the Feb 15 - Mar 1 climb

Trend conditions in Gilt futures remain bearish. Futures traded to a fresh cycle low Tuesday but did rebound from the session low of 119.86. Gains are considered corrective. The break of 120.26, Mar 24 low, marks a resumption of the broader downtrend and this has resulted in a test of the 120.00 handle. Further weakness would open 119.75, a Fibonacci retracement. Key short-term resistance is seen at 122.72, Mar 18 high.

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