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(Z0) Sharp Sell-Off 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: 136.08 50-day EMA
  • RES 1: 135.87 High Oct 22
  • PRICE: 135.37 @ Close Oct 22
  • SUP 1: 135.32 Low Oct 22
  • SUP 2: 135.06 Low Oct 7 and the bear trigger
  • SUP 3: 134.59 Low Sep 1
  • SUP 4: 134.32 Low Aug 28 and a key support

Gilt futures remain heavy. Yesterday's sell-off extends this week's sharp move lower reversing the strong rally between Oct 7 - 16. Futures have traded through 135.79, 61.8% of the Oct 7 - 16 upleg and 135.51, the 76.4% retracement. The impulsive break lower exposes primary support at 135.06, Oct 7 low. Clearance of this level would reinforce this week's bearish developments. Initial resistance is at 135.87, yesterday's high.

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