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(M4) Bull Flag Formation

GILT TECHS
  • RES 4: 99.19 76.4% of the Mar 12 - Apr 25 bear leg
  • RES 3: 99.10 High Apr 10
  • RES 2: 98.46 61.8% of the Mar 12 - Apr 25 bear leg
  • RES 1: 98.29 High May 10
  • PRICE: 97.61 @ Close May 14
  • SUP 1: 97.23 Low May 14
  • SUP 2: 96.43/95.36 Low May 3 / Low Apr 25 and the bear trigger
  • SUP 3: 95.00 Round number support
  • SUP 4: 94.86 2.236 proj of the Mar 12 - 15 - 22 price swing

Gilt futures are in consolidation mode and the contract is trading just below its recent high. The latest pause appears to be a bull flag formation. A break of resistance at 98.29, the May 10 high, would confirm the flag and highlight a resumption of the recovery that started Apr 25, and open 98.46, a Fibonacci retracement. On the downside, a stronger reversal lower would refocus attention on 95.36, the Apr 24 low and bear trigger.

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