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(Z3) Trades Through Support

GILT TECHS
  • RES 4: 97.27 76.4% retrace of the Jul 19 - Aug 17 bear leg (cont)
  • RES 3: 96.19 High Jul 31(cont)
  • RES 2: 95.82 High Aug 10 (cont)
  • RES 1: 94.81/95.79High Sep 4 / 1
  • PRICE: 93.93 @ Close Sep 5
  • SUP 1: 93.63 50.0% retracement of the Aug 17 - Sep 1 rally
  • SUP 2: 93.12 61.8 retracement of the Aug 17 - Sep 1 rally
  • SUP 3: 92.56 Low Aug 23
  • SUP 4: 91.47 Low Aug 17 and key support

Gilt futures traded lower Tuesday and this resulted in a break of support at 94.14, the Aug 29 low. The break undermines the recent bullish theme and highlights a possible reversal . If correct, it suggests potential for a deeper retracement. The next support is 93.63, a Fibonacci retracement. On the upside, key short-term resistance is 95.79, the Sep 1 high. A breach of this level would reinstate a bullish theme.

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