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(U1) Bull Channel Breakout

BTP TECHS
  • RES 4: 157.71 High Aug 5 and the bull trigger
  • RES 3: 155.43 High Aug 13
  • RES 2: 155.11 High Aug 25
  • RES 1: 154.63 Former channel support drawn off the May 19 low
  • PRICE: 153.84 @ Close Aug 25
  • SUP 1: 153.60 50-day EMA
  • SUP 2: 153.14 Low Jul 22
  • SUP 3: 152.84 50.0% retracement of the May 25 - Aug 5 rally
  • SUP 4: 152.66 Low Jul 15

BTP futures traded lower yesterday. The contract cleared a key support at 154.54 marking a recent low and importantly the base of a bull channel drawn off the May 19 low. The bearish breakout signals scope for a deeper corrective pullback and attention is on the 50-day EMA at 153.60. A clear break of the average is required to suggest scope for further downside. Initial resistance is at the trendline - at 154.63 today.

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