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.
