(U9) Engulfing candle pattern *RES 4:....>

GILT TECHS: (U9) Engulfing candle pattern

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

*RES 3: 133.65 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: 131.85 @ Close Jul 25

*SUP 1: 131.57 Low Jul 25

*SUP 2: 131.27 Low Jul 19

*SUP 3: 131.05 Low Jul 18

*SUP 4: 130.89 Bull channel base drawn off the May 21 low

U9 Gilt failed to hold onto yesterday's high and closed down on the day. A

strong bearish candle pattern developed yesterday known as a bearish engulfing

reversal. The fact that this has occurred following the print of a fresh

contract high is significant too, highlights the markets inability to follow

through on a break of the former high on Jul 4. Key support has been defined at

yesterday's low of 131.57. A breach would signal scope for a deeper pullback.