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(Z0) Still Vulnerable

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: 136.03 50-day EMA
  • RES 1: 135.87 High Oct 22
  • PRICE: 135.43 @ Close Oct 27
  • SUP 1: 135.04 Low Oct 23 and the intraday bear trigger
  • SUP 2: 134.59 Low Sep 1
  • SUP 3: 134.32 Low Aug 28 and a key support
  • SUP 4: 134.00 1.50 proj of Sep 21 - Oct 7 sell-off from Oct 16 high

Gilt futures remain heavy following last week's sell-off. Weakness Oct 23 resulted in the contract trading through the Oct 7 low of 135.06 before finding some support. A clear break of 135.06l would reinforce last week's week's bearish developments and expose 134.32, Aug 28 low. Price needs to trade above 136.03, the 50-day EMA, to ease the current bearish threat. This would open 136.97, the Oct 16 high once again.

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