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(Z0) Sharp Correction Lower Extends

GILT TECHS
  • RES 4: 136.38 Low Oct 20 and a gap high on the daily chart
  • RES 3: 136.27 High Oct 21 and a gap low on the daily chart
  • RES 2: 136.11 50-day EMA
  • RES 1: 135.87 Intraday high
  • PRICE: 135.56 @ 10:53 BST Oct 22
  • SUP 1: 135.51 Intraday low and 76.4% of the Oct 7 - 16 rally
  • SUP 2: 135.29 Low Oct 9
  • SUP 3: 135.06 Low Oct 7 and the bear trigger
  • SUP 4: 134.59 Low Sep 1

Gilt futures remain heavy. Today's sell-off extends this week's sharp move lower reversing the strong rally between Oct 7 - 16. Futures have traded through 135.79, yesterday's low and 61.8% of the Oct 7 - 16 upleg. Attention is on 135.51, today's low and more importantly the 76.4% retracement. A break would expose primary support at 135.06, Oct 7 low. On the upside, initial resistance is at 135.87, today's intraday high.

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