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(Z2) Bullish Engulfing Candle Still In Play

GILT TECHS
  • RES 4: 105.34 High Sep 22
  • RES 3: 102.45 High Sep 23
  • RES 2: 101.80 20-day EMA
  • RES 1: 100.00 Round number resistance
  • PRICE: 98.55 @ Close Oct 3
  • SUP 1: 94.92 Low Sep 29
  • SUP 2: 90.99 Low Sep 28 and the bear trigger
  • SUP 3: 90.57 2.618 proj of the May 12 - Jun 16 - Aug 2 swing (cont)
  • SUP 4: 90.00 Psychological round number

A strong rally last Wednesday in Gilt futures led to a short-term reversal and yesterday gains have reinforced the short-term bullish outlook. In pattern terms, the Sep 28 session was an engulfing candle. This pattern signals scope for a continuation higher near-term and attention is on resistance at the 20-day EMA, at 101.49. A break of this average would further strengthen a short-term bullish case. Initial support is seen at 94.92, the Sep 29 low.

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