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(Z1) Reversal Pattern Still In Play

GILT TECHS
  • RES 4: 127.09 61.8% retracement of the Aug - Oct downleg
  • RES 3: 126.84 Low Sep 17
  • RES 2: 126.39 50.0% retracement of the Aug - Oct downleg
  • RES 1: 125.87 High Oct 27
  • PRICE: 124.80 @ Close Nov 3
  • SUP 1: 124.25 Low Nov 1
  • SUP 2: 123.43 Low Oct 21 and the bear trigger
  • SUP 3: 123.16 Low Feb 27, 2019 (cont)
  • SUP 4: 122.75 2.236 proj of the Aug 31 - Sep 17 - 21 price swing

Gilt futures remain above Monday's 124.25 low. Attention is on last week's breach of 125.27, Oct 14 high. The close above this former resistance highlights a double bottom reversal. If correct, it sets the scene for an extension higher near-term above 126.00 towards 126.39, a retracement level. Key trend support has been defined at 123.43, Oct 21 low. A break would resume the recent downtrend. Initial support is at 124.25.

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