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(Z0) Outlook Remains Bearish

GILT TECHS
  • RES 4: 135.97 High Nov 9
  • RES 3: 135.34 Low Oct 27
  • RES 2: 135.04 Low Oct 23 and a recent breakout level
  • RES 1: 134.48 High Nov 10
  • PRICE: 133.89 @ Close Nov 11
  • SUP 1: 133.57 1.618 proj of Oct 16 - 23 sell-off from Nov 5 high
  • SUP 2: 135.55 61.8% retracement of the Mar - May rally (cont)
  • SUP 3: 133.29 1.764 proj of Oct 16 - 23 sell-off from Nov 5 high
  • SUP 4: 133.00 Round number support

Gilts remain bearish following Monday's sell-off and the subsequent follow through. A number of key support levels have been cleared. Most importantly, price traded through support at 135.04, low Oct 23 and through 134.32, Aug 28 low. The move lower confirms a resumption of the broader downleg since early August. The focus is on 133.57 and 133.29 next, Fibonacci extension levels. On the upside, firm resistance is at 135.04.

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