Free Trial

(U0) Monitoring Reversal Patterns

GILT TECHS
  • RES 4: 139.70 Low Mar 3 (cont)
  • RES 3: 139.05 High Mar 12 (cont)
  • RES 2: 138.48 1.00 projection of Jun 19 - 25 rally from Jul 1 low
  • RES 1: 138.46 High Jul 24 and the bull trigger
  • PRICE: 138.34 @ Close Jul 27
  • SUP 1: 137.82/79 Low Jul 24 / 20-day EMA
  • SUP 2: 137.51 Low Jul 22
  • SUP 3: 137.36 Low Jul 15
  • SUP 4: 137.25 Low Jul 13 and key near-term support

Gilts futures traded higher last week however found resistance Friday at
138.46 resulting in a strong sell-off and a weak close. Japanese candle
patterns allude to a potential top. A doji pattern Thursday and Friday's
session, a bearish engulfing suggest bullish sentiment is waning. If
correct, the risk is for weakness towards initial firm support at 137.51, Jul
20 low. A break of 138.46 negates the patterns and resumes the uptrend.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.