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(U2) Bearish Outlook Intact

GILT TECHS
  • RES 4: 120.00 Round number resistance
  • RES 3: 119.25 High May 19
  • RES 2: 118.63 High May 24
  • RES 1: 118.51 High May 26
  • PRICE: 117.77 @ Close of May 27
  • SUP 1: 117.22 Low May 9
  • SUP 2: 116.53 1.00 proj of the May 19 - 24 - 26 price swing
  • SUP 3: 115.70 Low May 9 and the bear trigger
  • SUP 4: 115.50 1.00 proj of the May 19 - 24 - 26 price swing

The primary trend direction in Gilt futures remains down. The pullback from recent highs is a bearish development and suggests the correction between May 9 - 12 is over. Attention is on the key support and bear trigger at 115.70 May 9 low. Key short-term resistance has been defined at 119.25, May 9 high and the 120.00 handle, where a break is required to reinstate a short-term bullish bullish theme.

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