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(Z0) Sharp Slide Extends

GILT TECHS
  • RES 4: 137.11 High Aug 11
  • RES 3: 136.43 High Aug 24 and key resistance
  • RES 2: 136.11 High Aug 25
  • RES 1: 135.57 Low Aug 13 and recent bear trigger
  • PRICE: 135.08 @ Close Aug 26
  • SUP 1: 134.98 Low Aug 26
  • SUP 2: 134.70 0.764 proj of the Aug 4 - 13 sell-off from Aug 24 high
  • SUP 3: 134.15 1.000 proj of the Aug 4 - 13 sell-off from Aug 24 high
  • SUP 4: 134.00 Round number support

Gilts futures traded sharply lower again yesterday. The outlook remains bearish following this week's confirmation of a resumption of the downtrend that started early August. The breach of support at 135.57, Aug 13 low also confirmed a recent bearish pattern, a bear flag that highlighted a continued bearish threat. The focus is on 134.74 next, a Fibonacci projection. On the upside, initial resistance is at 135.57, Aug 13 low.

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