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(Z0) Volatile Price Action But Finds Support

GILT TECHS
  • RES 4: 137-51 High Aug 6
  • RES 3: 137.31 High Aug 10
  • RES 2: 137.04/05 High Sep 21 / 76.4% of the Aug 4 - 28 decline
  • RES 1: 136.90 High Sep 30 and the intraday bull trigger
  • PRICE: 135.97 @ Close Oct 1
  • SUP 1: 135.32 Low Oct 1 and the near-term bear trigger
  • SUP 2: 134.96 76.4% retracement of the Aug 28 - Sep 28 rally
  • SUP 3: 134.59 Low Sep 1
  • SUP 4: 134.32 Low Aug 28 and a key support

Volatile price action yesterday saw Gilts trade down to a low of 135.32 before rebounding sharply. This move signals a potential reversal of the recent downleg and if price is able to remain above 135.32, scope is seen for an extension higher towards 136.90, the Sep 30 high. A break of this resistance would open 137.04, Sep 21 high. Sub 135.32 levels would resume bearish pressure once again.

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