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(U9) Head and shoulder reversal *RES.....>

GILT TECHS
GILT TECHS: (U9) Head and shoulder reversal
*RES 4: 135.88 2.382 projection of Jun 27-Jul 4 rally from Jul 12 low
*RES 3: 135.34 Contract high Aug 15
*RES 2: 135.15 High Aug 20
*RES 1: 134.76 High Aug 21
*PRICE: 134.01 @ Close Aug 22
*SUP 1: 133.78/73 Low Aug 22 / Low Aug 8
*SUP 2: 133.35/33 38.2 % retracement of the Jul 12-Aug 15 rally / Low Aug 2
*SUP 3: 132.67 Low Aug 1
*SUP 4: 132.39 Trendline support drawn off the May 21 low
U9 Gilt has cleared its trendline support drawn off the Jul 25 low and breached
former support at 133.99, the Aug 19 low. This confirms a top and the start of a
correction. Note too that yesterday's sell-off also conformed a head and
shoulders reversal, following the break of its neckline at 134.10. The pattern
clearly reflects the shift in sentiment. Potential is for a move towards 133.35
next, 38.2 % retracement of the Jul 12-Aug 15 rally. Resistance is at 134.76.

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