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(U2) Bear Flag

  • RES 4: 109.180 High Jun 3 and 9
  • RES 3: 108.715 High Jun 10
  • RES 2: 108.738 20-day EMA
  • RES 1: 108.495 High Jun 13
  • PRICE: 108.075 @ 05:24 BST Jun 21
  • SUP 1: 107.885/107.705 Low Jun 17 / Low Jun 16 and bear trigger
  • 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. This pause appears to be a bear flag formation - a pattern that reinforces bearish conditions. Moving average studies are in a bear mode too highlighting current trend conditions. This suggests scope for a continuation of the downtrend. The focus is on 107.662 next, a Fibonacci projection. Initial firm resistance is seen at 108.738, the 20-day EMA.

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