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(M3) Gains Considered Corrective - For Now

GILT TECHS
  • RES 4: 107.33 High Mar 20
  • RES 3: 106.25 61.8% retracement of the Mar 20 - 31 downleg
  • RES 2: 105.62 High Mar 27
  • RES 1: 105.04 50.0% retracement of the Mar 20 - 31 downleg
  • PRICE: 104.32 @ Close Apr 6
  • SUP 1: 103.90/102.74 20-day EMA / Low Mar 31
  • SUP 2: 102.31 61.8% retracement of the Feb 28 - Mar 20 rally
  • SUP 3: 102.00 Round number support
  • SUP 4: 101.12 76.4% retracement of the Feb 28 - Mar 20 rally

Gilt futures traded higher last week and price remains above 102.74, Mar 31 low. A short-term bearish threat remains present - recent weakness resulted in a breach of support at the 20-day EMA which intersects at 103.94. A clear break of this EMA would signal scope for a continuation lower towards 102.31 next, a Fibonacci retracement. On the upside, initial resistance is seen at 105.04, a Fibonacci retracement. A break would strengthen a bullish case.

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