Technical forecast for Gilts

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Gilts for December failed again just below 108.20. Below 107.80 keeps the market under pressure for 107.55/45 then 107.26 before a test of last week’s low at 107.16. We are in a strong bear trend so a break below 106.98 cannot be ruled out & signals continued losses this week towards 106.80 then 106.64. Targets if we continue lower perhaps later in the week are 106.10-105.97, 105.49/45, 105.30/28, & even 105.13/08.

Watch 108.20/24 as a break higher fills the gap at 108.41. Any shorts here need stops above 108.54 for a test of resistance at 108.85 & a selling opportunity with stops above 108.95.

Jason Sen began his career in the options pits on the trading floor of LIFFE in 1987 at the age of 19, making markets on his own account. In 2001 when the trading floor closed he successfully made the transition to day trading on computer screens. Jason always had an interest in technical analysis throughout his trading career but began to study this area in depth from 2006. www.daytradeideas.com has established itself as the leading provider of... More