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(Z3) Bear Threat Remains Present

GILT TECHS
  • RES 4: 95.63 High Sep 27
  • RES 3: 94.84 20-day EMA
  • RES 2: 94.74 High Sep 28
  • RES 1: 94.37 High Sep 29
  • PRICE: 94.16 @ Close Sep 29
  • SUP 1: 93.62/92.71 Low Sep 29 / 76.4% of 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 last Thursday’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 94.74, the Sep 28 high. Gains are considered corrective.

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