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(U2) Approaching Its Bear Trigger

GILT TECHS
  • RES 4: 120.00 Round number resistance
  • RES 3: 119.25 High May 19
  • RES 2: 118.63 High May 24 and key near-term resistance
  • RES 1: 117.49/118.51 High May 31 / High May 26
  • PRICE: 115.97 @ Close May 31
  • SUP 1: 115.76 Low May 31
  • SUP 2: 115.70 Low May 9 and the bear trigger
  • SUP 3: 115.54 1.54 proj of the May 19 - 24 - 26 price swing
  • SUP 4: 115.31 1.618 proj of the May 19 - 24 - 26 price swing

Gilt futures traded sharply lower Tuesday to extend the pullback from its recent highs in May. The contract is approaching its key near-term support at 115.70, the May 9 low and bear trigger. The primary trend direction remains down and a break of 115.70 would confirm a resumption of the bear leg. This would open 115.50 initially, a Fibonacci projection. Initial resistance is seen at yesterday’s high of 117.49.

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