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(Z3) Remains Soft

GILT TECHS
  • RES 4: 96.31 3.0% 10-dma envelope
  • RES 3: 96.05 High Sep 25
  • RES 2: 95.66 High Oct 12 and the bull trigger
  • RES 1: 93.92/94.28 20-day EMA / High Oct 16
  • PRICE: 93.11 @ Close Oct 17
  • SUP 1: 92.81 Low Oct 17
  • SUP 2: 92.48 76.4% retracement of the Oct 4 - 12 rally
  • SUP 3: 91.90 Low Oct 6
  • SUP 4: 91.47 Low Aug 17 and key support

Gilt futures faced resistance last Thursday and 95.66, the Oct 12 high, has been defined as a key short-term hurdle for bulls. The contract has traded lower this week and remains soft. Support to watch lies at 92.48, a Fibonacci retracement. A breach would strengthen bearish conditions and open key support and the bear trigger at 91.47, the Aug 17 low. For bulls, a clearance of 95.66 would confirm a resumption of the recent rally.

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