(U9) Bearish engulfing candle *RES 4:....>

GILT TECHS: (U9) Bearish engulfing candle

*RES 4: 134.04 1.618 projection of the Jun 27-Jul 4 rally off the Jul 12 low

*RES 3: 133.72 Broad bull channel top drawn off the May 21 low

*RES 2: 133.00 Round number resistance

*RES 1: 132.58 High Jul 25

*PRICE: 132.08 @ Close Jul 26

*SUP 1: 131.57 Low Jul 25

*SUP 2: 131.27 Low Jul 19

*SUP 3: 131.05 Low Jul 18

*SUP 4: 130.96 Bull channel base drawn off the May 21 low

U9 Gilt failed to hold onto its highs last Thursday and closed down on the day

resulting in the formation of a strong bearish candle pattern, known as a

bearish engulfing reversal. It is significant that this occurred following the

print of a fresh contract high as it highlights the markets inability to follow

through on the break of the former high on Jul 4. Key support lies at 131.57, a

breach would signal scope for a deeper pullback. Key resistance is at 132.58.