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(Z2) Resumes Its Downtrend

GILT TECHS
  • RES 4: 113.32 High Aug 18
  • RES 3: 112.43 High Aug 22
  • RES 2: 111.54 High Aug 23
  • RES 1: 109.40/110.85 High Aug 30 / 26 and key near-term resistance
  • PRICE: 108.87 @ Close Aug 30
  • SUP 1: 108.38 Low Aug 30
  • 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 a bearish impulsive run continues to result in fresh lows - the contract traded down again yesterday. Support at 108.94, Aug 24 low, has been breached. This confirms a resumption of the downtrend and opens the 1080.00 handle next. Firm short-term resistance has been defined at 110.85, the Aug 26 high. A break of this level is required to suggest scope for a stronger correction.

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