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(Z0) Pullback Likely A Correction

GILT TECHS
  • RES 4: 137.89 High Aug 4 and major resistance
  • RES 3: 137-51 High Aug 6
  • RES 2: 137.31 High Aug 10
  • RES 1: 137.05 76.4% retracement of the Aug 4 - 28 decline
  • PRICE: 136.36@ Close Sep 22
  • SUP 1: 136.18 Low Sep 22
  • SUP 2: 135.93 Low Sep 17 and key near-term support
  • SUP 3: 135.70 Low Sep 10
  • SUP 4: 135.31 Low Sep 7 and the reversal trigger

Gilts reversed course yesterday following Monday's resumption of the uptrend. A bullish theme remains in place and yesterday's setback is likely a correction. Futures cleared resistance Monday at 136.87, Sep17 high. The climb paves the way for an extension of the current uptrend and the focus is on 137.05, a Fibonacci retracement. A break of this level would open 137.89 further out, Aug 4 high. Firm support is at 135.93, Sep 17 low.

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