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(U2) Bear Trend Acceleration

GILT TECHS
  • RES 4: 115.55 High Jun 6
  • RES 3: 114.83 20-day EMA
  • RES 2: 114.28 High Jun 10
  • RES 1: 113.25 High Jun 15
  • PRICE: 111.19 @ Close Jun 16
  • SUP 1: 109.89/60 Low Jun 16 / 4.5 proj of May 19 - 24 - 26 swing
  • SUP 2: 109.33 Low Jul 8 2014 (cont)
  • SUP 3: 108.98 Low Jul 7 2014 (cont)
  • SUP 4: 108.73 Low Jul 3 2014 (cont)

Gilt futures outlook remains bearish and yesterday’s sharp sell-off has once again confirmed a resumption of the primary downtrend. Price did recover from session lows but gains are considered corrective. The move lower this week has confirmed an acceleration of the downtrend and indications are that the trend is set to extend. The focus is on 109.60 next, a Fibonacci projection. Initial firm resistance is seen at 113.25, Wednesday’s low.

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