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(U2) Bull Cycle Extends

GILT TECHS
  • RES 4: 121.07 High May 12 (cont)
  • RES 3: 120.00 Round number resistance
  • RES 2: 119.26 1.618 proj of the Jun 16 - 24- 29 price swing
  • RES 1: 119.11 High Aug 1
  • PRICE: 118.89@ Close Aug 2
  • SUP 1: 116.70 Low Jul 28
  • SUP 2: 116.52/08 20- and 50-day EMA
  • SUP 3: 114.08/113.03 Low Jul 8 / Low Jun 30
  • SUP 4: 111.72 Low Jun 29 and key near-term support

The S/T outlook in Gilt futures remains bullish and fresh highs last week reinforce this set-up. The contract traded higher Monday, starting the week on a firm note. Continued gains highlight an extension of the recent break of resistance at 117.09, Jul 6 high. This maintains the bullish price sequence of higher highs and higher lows and opens 119.26 next, a Fibonacci projection. Key short-term support is at 114.08, Jul 8 low. Initial firm support is at 116.52.

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