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(Z3) Bear Cycle Extends

GILT TECHS
  • RES 4: 95.63 High Sep 27
  • RES 3: 94.91 High Sep 28
  • RES 2: 94.74 High Sep 28
  • RES 1: 93.72 50.0% retracement of yesterday’s range
  • PRICE: 94.90 @ Close Sep 27
  • SUP 1: 92.71 76.4% retracement of the Aug 17 - Sep 20 bull run
  • SUP 2: 92.56 Low Aug 23
  • SUP 3: 92.00 Round number support
  • SUP 4: 91.47 Low Aug 17 and key support

Gilt futures remain bearish and yesterday’s sharp sell-off reinforces this condition. The contract has breached 93.36, the Sep 6 low and a key support. This has opened 92.71, a Fibonacci retracement. Clearance of this level would expose key support at 91.47, the Aug 17 low. On the upside, key short-term resistance has been defined at 96.71, the Sep 20 high. Initial firm resistance is at yesterday’s 94.74 high.

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