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(Z2) Heading South

GILT TECHS
  • RES 4: 113.32 High AUg 18
  • RES 3: 112.43 High Aug 22 and key near-term resistance
  • RES 2: 111.54 High Aug 23
  • RES 1: 110.85 High Aug 26
  • PRICE: 110.23 @ Close Aug 26
  • SUP 1: 108.94 Low Aug 24 and the bear trigger
  • SUP 2: 108.00 Round number support
  • SUP 3: 107.36 1.00 projection of the Aug 22 - 24 - 26 price swing
  • SUP 4: 106.54 1.236 projection of the Aug 22 - 24 - 26 price swing

Gilt futures remain vulnerable and the bearish impulsive run continued last week. The sharp move lower reinforces a bearish theme and attention is on 108.94, the Aug 24 low and the bear trigger. A break would resume the downtrend and clear the way for the 108.00 handle. Initial firm resistance is seen at 112.43, the Aug 22 high. Short-term gains would be considered corrective.

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