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(Z0) Volatile Price Action

GILT TECHS
  • RES 4: 137.11 High Aug 11
  • RES 3: 137.04 High Sep 21 and a key resistance
  • RES 2: 136.97 High Oct 16 and the bull trigger
  • RES 1: 136.69 High Nov 5
  • PRICE: 135.96 @ Close Nov 5
  • SUP 1: 135.78 Low Nov 4
  • SUP 2: 135.34 Low Oct 27
  • SUP 3: 135.04 Low Oct 23 and the near-term bear trigger
  • SUP 4: 134.99 1.00 proj of Sep 21 - Oct 7 downleg from Oct 16 high

Gilts continue to trade in a volatile manner. Futures rallied yesterday, clearing resistance 136.38, Oct 20 low and filled a gap on the chart. Price however stalled at the day high of 136.69 and closed near session lows. Despite the pullback, a bullish tone remains intact while support at 135.34, Oct 27 low holds. A positive rebound would refocus attention on 136.97, Oct 16 high. Sub 135.34 levels would expose the key support at 135.04, Oct 23 low.

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