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(U2) Trades Through Trendline Support

GILT TECHS
  • RES 4: 121.07 High May 12 (cont)
  • RES 3: 120.00 Round number resistance
  • RES 2: 118.88/119.84 High Aug 4 / 2 and the bull trigger
  • RES 1: 118.10 High Aug 10
  • PRICE: 116.42 @ Close Aug 10
  • SUP 1: 116.04 38.2% retracement of the Jun 16 - Aug 2 upleg
  • SUP 2: 114.86 50.0% retracement of the Jun 16 - Aug 2 upleg
  • SUP 3: 114.08 Low Jul 8 and a key support
  • SUP 4: 113.69 61.8% retracement of the Jun 16 - Aug 2 upleg

Gilt futures traded lower Thursday and in the process managed to break support 116.79, trendline support drawn from the Jun 16 low. The current pullback is still considered corrective and the trend outlook remains bullish. A deeper retracement though would expose 116.04 next, a Fibonacci retracement. On the upside, initial resistance has been defined at 118.10, the Aug 10 high. A break would highlight a possible bullish reversal.

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