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(Z0) Bearish Conditions Still Dominate

GILT TECHS
  • RES 4: 136.43 High Aug 24 and key resistance
  • RES 3: 135.86/89 Trendline drawn off the Aug 4 high / 20-day EMA
  • RES 2: 135.60 High Aug 27
  • RES 1: 135.24 High Sep 1
  • PRICE: 135.04 @ Close Sep 1
  • SUP 1: 134.32 Low Aug 28
  • SUP 2: 134.11 1.000 proj of the Aug 4 - 13 sell-off from Aug 24 high
  • SUP 3: 134.00 Round number support
  • SUP 4: 133.56 1.236 proj of the Aug 4 - 13 sell-off from Aug 24 high

Gilts futures have recovered from recent lows. it is too early to determine whether base building has begun and despite this bounce, bearish conditions still dominate. Last week's confirmation of a resumption of the downtrend that started early August and the recent impulsive sell-off continues to weigh on sentiment. The focus is on 134.15 next, a Fibonacci retracement. Resistance is at 135.60, Aug 27 high.

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