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(Z0) Gains Considered Corrective

GILT TECHS
  • RES 4: 135.69 50-day EMA
  • RES 3: 135.34 Low Oct 27
  • RES 2: 135.28 20-day EMA
  • RES 1: 135.04 Low Oct 23 and a recent breakout level
  • PRICE: 134.75 @ Close Nov 13
  • SUP 1: 133.97 Low Nov 12
  • 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

Gilts maintains a bearish risk following the Nov 9 sell-off and the subsequent follow through. The recovery from 133.60, Nov 11 low is considered a correction with the next resistance at 135.04, low Oct 23 and a recent breakout level. A clear break of this level is required to signal scope for a stronger short-term bounce. A return lower would refocus attention on the bear trigger at 133.60.

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