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(U3) Bearish Extension

GILT TECHS
  • RES 4: 98.00 Round number resistance
  • RES 3: 97.91 38.2% retracement of the Mar - Jul downleg (cont)
  • RES 2: 97.84 High Jul 19 and the bull trigger
  • RES 1: 96.19/81 High Jul 31 / 27
  • PRICE: 95.12 @ Close Aug 1
  • SUP 1: 94.87 Low Aug 1
  • SUP 2: 94.58 Low Jul 17 and a key near-term support
  • SUP 3: 94.20 Low Jul 13
  • SUP 4: 93.45 76.4% retracement of the Jul 7 - 19 rally

Gilt futures traded lower last week and in the process breached support at 96.11, the Jul 21 low. This highlights a bearish threat and yesterday’s move lower reinforces this condition. Note that the 20-day EMA has also been breached - a bearish development. This opens 94.58, the Jul 17 low. Key short-term resistance is unchanged at 97.84, the Jul 19 high. A break would resume the uptrend. Initial firm resistance is at 96.19, the Jul 31 high.

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