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(Z2) Trend Outlook Remains Bearish

GILT TECHS
  • RES 4: 112.43 High Aug 22
  • RES 3: 111.54 High Aug 23
  • RES 2: 109.47/110.85 High Aug 31 / 26 and key near-term resistance
  • RES 1: 106.84/107.93 High Sep 8 / High Sep 1
  • PRICE: 105.24 @ Close Sep 16
  • SUP 1: 104.47 Low Sep 14
  • SUP 2: 103.87 2.00 projection of the Aug 22 - 24 - 26 price swing
  • SUP 3: 103.05 2.236 projection of the Aug 22 - 24 - 26 price swing
  • SUP 4: 102.54 2.382 projection of the Aug 22 - 24 - 26 price swing

Gilt futures are consolidating but the trend outlook remains bearish. The bearish impulsive run that started early August signals scope for a continuation. The breach on Aug 30 of 108.94, Aug 24 low, confirmed a resumption of the current downtrend and maintains the bearish price sequence of lower lows and lower highs. Attention is on 103.87, a Fibonacci projection. Initial firm resistance is at 106.84, the Sep 8 high.

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