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(Z0) Reverses Tuesday's Rally

GILT TECHS
  • RES 4: 137-51 High Aug 6
  • RES 3: 137.31 High Aug 10
  • RES 2: 137.05 76.4% retracement of the Aug 4 - 28 decline
  • RES 1: 136.78 High Sep 9
  • PRICE: 135.90 @ Close Sep 9
  • SUP 1: 135.73 Low Sep 8
  • SUP 2: 135.31 Low Sep 7 and key near-term support
  • SUP 3: 135.32 Low Sep 2
  • SUP 4: 134.32 Low Aug 28

Sharp losses in Gilts yesterday reversed the previous session's strong rally. Despite the pullback, a positive outlook remains intact and the contract is holding above support at 135.31, Sep 7 low. A recovery would refocus attention on yesterday's high of 136.78 where a break would open 137.05, a Fibonacci retracement. Weakness below support at 135.31 would instead highlight a bearish threat.

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