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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: 109.47/110.85 Intraday high / 26 and key near-term resistance
  • PRICE: 107.90 @ 10:19 BST Aug 30
  • SUP 1: 107.79 Intraday low
  • SUP 2: 107.36 1.00 projection of the Aug 22 - 24 - 26 price swing
  • SUP 3: 107.00 round number support
  • 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, with fresh lows delivered this morning. The breach of support yesterday at 108.94, Aug 24 low, confirmed a resumption of the downtrend and today’s weakness has delivered a print below the 108.00 handle. This has opened 107.36, a Fibonacci projection. Firm short-term resistance has been defined at 110.85, the Aug 26 high.

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