(Z3) Further Gains Would Signal Shift in S/T Momentum

• RES 4: 95.67 High Sep 26
• RES 3: 94.74 High Sep 28
• RES 2: 94.08 20-day EMA
• RES 1: 93.97 High Oct 10
• PRICE: 93.93 @ 16:23 BST Oct 10
• SUP 1: 91.47 Low Aug 17 and key support
• SUP 2: 91.00 Round number support
• SUP 3: 90.06 1.00 proj of the Jul 19 - Aug 17 - Sep 20 price swing
• SUP 4: 90.00 Psychological round number

Gilt futures rallied sharply Monday, and strength persisted into the Tuesday close. This works against the previously bearish condition. For the corrective recovery off last Wednesday’s low to take hold, prices need to break and close above the 94.08 20-day EMA, a move which would confirm a short-term shift in momentum. To the downside, the contract recently breached 93.36, the Sep 6 low and a key support. Furthermore, 92.71, 76.4% of Aug 17 - Sep 20 bull run, has been breached. Sights are on 91.47, the Aug 17 low, and the next key support.