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(M4) Bears Remain In The Driver’s Seat

GILT TECHS
  • RES 4: 97.74 50-day EMA
  • RES 3: 97.28 High Apr 22
  • RES 2: 96.85 20-day EMA
  • RES 1: 96.57 High Apr 29
  • PRICE: 95.35 @ Close May 2
  • SUP 1: 95.36 Low Apr 25
  • SUP 2: 95.00 Round number support
  • SUP 3: 94.86 2.236 proj of the Mar 12 - 15 - 22 price swing
  • SUP 4: 94.52 2.382 proj of the Mar 12 - 15 - 22 price swing

A bearish theme in Gilt futures remains intact. The recent breach of support at 96.01, the Apr 17 low, confirmed a resumption of the downtrend and maintains the bearish price sequence of lower lows and lower highs. Furthermore, moving average studies have recently crossed, highlighting a bear-mode set-up. Scope is seen for a move towards the 95.00 handle next. Initial firm resistance to watch is at 96.85, the 20-day EMA.

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