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(Z1) Oversold Condition Unwinds

GILT TECHS
  • RES 4: 126.84 Low Sep 17
  • RES 3: 126.44 High Sep 24
  • RES 2: 125.72 High Oct 1
  • RES 1: 125.29 20-day EMA
  • PRICE: 124.84 @ Close Oct 13
  • SUP 1: 124.08/123.44 Low Oct 13 / Low Oct 11 and the bear trigger
  • SUP 2: 123.16 Low Feb 27, 2019 (cont)
  • SUP 3: 122.75 2.236 proj of the Aug 31 - Sep 17 - 21 price swing
  • SUP 4: 122.15 Low Jan 18, 2019 (cont)

Gilt futures remain above recent highs and the contract rallied yesterday. Despite this week's positive price action, the move is considered corrective and is allowing an oversold condition to unwind. The trend remains bearish and a resumption of weakness would refocus attention on Monday's low of 123.44. This is also the bear trigger. Initial resistance is seen at 125.52, the 20-day EMA.

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