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(M2)‌‌ Corrective Bounce

  • RES 4: 122-12+ High Apr 4
  • RES 3: 121-16 50-day EMA
  • RES 2: 121-09 High Apr 14
  • RES 1: 119-11/120-18+ 20-day EMA / High Apr 27
  • PRICE: 118-28 @ 16:46 BST May 11
  • SUP 1: 117-08+ Low May 9 and the bear trigger
  • SUP 2: 116-28 0.764 proj of the Mar 7 - 28 - 31 price swing
  • SUP 3: 116-15 2.0% 10-dma envelope
  • SUP 4: 116.00 Round number support

The primary downtrend in Treasuries remains intact and the recovery from Monday’s low is considered corrective. Recent fresh cycle lows confirmed a resumption of the downtrend and an extension of the price sequence of lower lows and lower highs. Furthermore, recent corrections have tended to be shallow and this highlights bearish sentiment. Sights are on 116-28 next, a Fibonacci projection. Key resistance is 120-18+, Apr 27 high.

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