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(Z2) Bear Trend Accelerating

GILT TECHS
  • RES 4: 106.84 High Sep 8 and a key near-term resistance
  • RES 3: 106.27 20-day EMA
  • RES 2: 105.34/77 High Sep 22 / High Sep 15
  • RES 1: 102.45 Intraday high
  • PRICE: 100.51 @ 10:24 BST Sep 23
  • SUP 1: 99.99 Intraday low
  • SUP 2: 99.56 3.236 proj of the Aug 22 - 24 - 26 price swing
  • SUP 3: 98.75 Low Oct 1994 (cont)
  • SUP 4: 97.44 Low Sep 1994 (cont)

Gilt futures have resumed bearish activity today as the downtrend accelerates. The break lower maintains the bearish price sequence of lower lows and lower highs. Note too that corrections are proving to be short-lived and shallow - this clearly highlights the current bearish market sentiment. The psychological 100.00 handle has been pierced, attention turns to 99.56 next, a Fibonacci projection. Firm resistance is at Thursday’s high of 105.34.

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