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(U2) Sharp Sell-Off Extends

GILT TECHS
  • RES 4: 118.88 High Aug 4
  • RES 3: 118.10 High Aug 10
  • RES 2: 117.15 High Aug 15 and key short-term resistance
  • RES 1: 114.53/115.91 High Aug 18 / 17
  • PRICE: 113.09 @ Close Aug 19
  • SUP 1: 112.71 Low Aug 19
  • SUP 2: 112.24 76.4% retracement of the Jun 16 - Aug 2 upleg
  • SUP 3: 111.72 Low Jun 29
  • SUP 4: 110.57 Low Jun 21

Gilt futures remain vulnerable and last week’s sharp sell-off reinforces the current bearish climate. Recent weakness has resulted in a break of trendline support drawn from the Jun 16 low. Attention is on 112.24, a Fibonacci retracement. Initial resistance is at 114.53, Aug 18 high. A firmer level has been defined at 117.15, Aug 15 high, where a break is required to ease the current bearish threat.

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