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(Z2) Impulsive Bearish Wave Extends

GILT TECHS
  • RES 4: 103.60 20-day EMA
  • RES 3: 102.45 High Sep 23
  • RES 2: 98.68 Low Sep 23 and gap high on the daily chart
  • RES 1: 97.43 High Sep 27
  • PRICE: 96.16 @ Close Sep 26
  • SUP 1: 91.47 76.4% retracement of the 1990 - 2020 major bull cycle
  • SUP 2: 91.00 Round number support
  • SUP 3: 90.57 2.618 proj of the May 12 - Jun 16 - Aug 2 price swing
  • SUP 4: 90.00 Psychological round number

Gilt futures traded sharply lower once again yesterday as the impulsive wave of the current bear cycle extends. The contract is approaching an important chart point at 91.47. This marks the 76.4% retracement of the 1990 - 2020 major bull leg. A break would reinforce current bearish conditions and highlight, once again, the potential for an extension lower. Initial resistance is at Tuesday’s high of 97.43.

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