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(H4) Correction Appears Likely To Extend

SCHATZ TECHS
  • RES 4: 106.432 76.4% retracement of the Dec 29 - Jan 25 bear leg
  • RES 3: 106.304 61.8% retracement of the Dec 29 - Jan 25 bear leg
  • RES 2: 106.270 High Jan 5 and key short-term resistance
  • RES 1: 106.215 High Jan 31
  • PRICE: 106.050@ 05:48 GMT Feb 02
  • SUP 1: 105.930/760 Low Jan 30 / 25 and the bear trigger
  • SUP 2: 105.730 Low Nov 30
  • SUP 3: 105.660 High Nov 17
  • SUP 4: 105.470 Low Nov 28

A broader downtrend in Schatz futures remains intact and the latest recovery appears to be a correction - for now. However, the contract has traded above the 20-day EMA. This signals scope for a continuation higher that potentially exposes resistance at 106.270, the Jan 5 high. A breach of this hurdle would highlight a stronger reversal. On the downside, weakness through support at 105.760, the Jan 25 low, would reinstate a bearish theme.

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