(Z1) Bearish Price Structure

• RES 4: 130.53 High Aug 5 (cont)
• RES 3: 129.35 High Aug 20 and
• RES 2: 129.05 High Aug 31
• RES 1: 128.77 High Sep 3 a key near-term resistance
• PRICE: 128.17 @ Close Sep 8
• SUP 1: 127.89 Low Sep 7
• SUP 2: 127.65 61.8% retracement of the Jun 3 - Aug rally (cont)
• SUP 3: 127.50 Low Jun 28 (cont)
• SUP 4: 127.25 Low Jun 23 (cont)

The Gilt futures outlook remains bearish and Tuesday's move lower reinforces this condition. Price has cleared former support at 128.11, Sep 1 low and traded below the 128.00 handle. Note too that the contract has recently cleared its 50-day EMA on the continuation chart. The focus is on 127.65 next, a Fibonacci retracement. Key near-term resistance has been defined at 128.77, Sep 3 high.