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(M3) Trades Through The 20-Day EMA

GILT TECHS
  • RES 4: 107.78 High Feb 2 (cont) a and a key resistance
  • RES 3: 107.33 High Mar 20
  • RES 2: 105.62/106.37 High Mar 27 / 76.4% of Mar 24 - 28 pullback
  • RES 1: 104.35 High Mar 28
  • PRICE: 103.96 @ Close Mar 29
  • SUP 1: 103.26 50.0% retracement of the entire rally from Feb 28
  • SUP 2: 102.84 Low Mar 22
  • SUP 3: 102.31 61.8% retracement of the entire rally from Feb 28
  • SUP 4: 102.00 Round number support

Gilt futures traded lower Wednesday. This week’s move down has resulted in a break of support at the 20-day EMA which intersects at 103.74. The average represents an important short-term support and a clear break would signal scope for a continuation lower near-term, towards 102.84, the Mar 22 low. On the upside, initial resistance is seen at 104.35, Tuesday’s intraday high. A move above this level would ease the developing bearish threat.

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