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(Z3) Bullish Price Sequence

GILT TECHS
  • RES 4: 97.84 High Jul 19 (cont) and key resistance
  • RES 3: 97.57 High Jul 24(cont)
  • RES 2: 97.00 Round number resistance
  • RES 1: 96.66 0.764 proj of the Aug 17 - Sep 1 - Sep 6 price swing
  • PRICE: 96.27@ Close Sep 14
  • SUP 1: 95.37 Low Sep 14
  • SUP 2: 94.63 20-day EMA
  • SUP 3: 94.05 Low Sep 11
  • SUP 4: 93.36 Low Sep 6 and a key support

Gilt futures traded higher yesterday, extending the recovery from 93.36, the Sep 6 low. Key short-term resistance at 95.79, the Sep 1 high, has been breached and this signals a resumption of the bull cycle that started Aug 17. The break higher establishes a bullish price sequence of higher highs and higher lows and opens 96.66 next, a Fibonacci projection, ahead of 97.00. On the downside, initial firm support is seen at 94.63, the 20-day EMA.

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