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(U2) Impulsive Sell-Off

GILT TECHS
  • RES 4: 118.10 High Aug 10
  • RES 3: 117.15 High Aug 15 and key short-term resistance
  • RES 2: 114.53/115.32 High Aug 18 / 20-day EMA
  • RES 1: 113.57 High Aug 22
  • PRICE: 111.82 @ Close Aug 23
  • SUP 1: 111.17 Low Aug 23
  • SUP 2: 110.57 Low Jun 21
  • SUP 3: 109.89 Low Jun 16 and major support
  • SUP 4: 109.00 Round number support

Gilt futures remain vulnerable and last week’s sharp sell-off plus this week’s follow through, reinforces the current bearish climate. Recent weakness has also resulted in the break of trendline support drawn from the Jun 16 low. Attention is on key support at 109.89, the Jun 16 low and a key medium-term bear trigger. Initial resistance is at 113.57, Aug 22 high. A firmer level has been defined at 117.15, Aug 15 high.

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