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(Z0) Correction Higher Extends

GILT TECHS
  • RES 4: 135.97 High Nov 9
  • RES 3: 135.59 50-day EMA
  • RES 2: 135.15 20-day EMA
  • RES 1: 135.14 Low Oct 23 and a recent breakout level
  • PRICE: 134.83 @ Close Nov 18
  • SUP 1: 134.21/60 Low Nov 16 / Low Nov 11 and the bear trigger
  • SUP 2: 133.57 1.618 proj of Oct 16 - 23 sell-off from Nov 5 high
  • SUP 3: 135.55 61.8% retracement of the Mar - May rally (cont)
  • SUP 4: 133.29 1.764 proj of Oct 16 - 23 sell-off from Nov 5 high

Gilt futures traded higher yesterday and pressed through resistance at 135.04, Oct 23 low. The contract stalled at the day high though ending the session lower. A bearish risk remains present following the Nov 9 sell-off and subsequent follow through. Gains are considered corrective. The next strong band of resistance is highlighted by the 20- and 50-day EMAs. On the downside, a break of 134.21 would focus attention on key support at 133.60.

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