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(U2) Bears Pause For Breath

SCHATZ TECHS
  • RES 4: 109.300 High Jun 2
  • RES 3: 109.180 High Jun 3 and 9
  • RES 2: 108.804 20-day EMA
  • RES 1: 108.495 High Jun 13
  • PRICE: 108.175 @ 05:32 BST Jun 20
  • SUP 1: 107.705 Low Jun 16
  • SUP 2: 107.662 3.50 proj of the May 12 - 18 - 26 price swing
  • SUP 3: 107.589 3.618 proj of the May 12 - 18 - 26 price swing
  • SUP 4: 107.430 Low Jul 4 2011 (cont)

Schatz futures remain in a downtrend, although the contract is in consolidation mode for now. Fresh cycle lows last week reinforce the downtrend and confirm an extension of the bearish price sequence of lower lows and lower highs. This also suggests scope for a continuation of the trend. The focus is on 107.662 next, a Fibonacci projection. On the upside, initial firm resistance is seen at 108.804, the 20-day EMA.

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