(U2) Scope For Short-Term Gains

• RES 4: 116.00 Round number resistance
• RES 3: 115.55 High Jun 6
• RES 2: 115.02 High Jun 8
• RES 1: 114.55 High Jun 24
• PRICE: 113.09 @ Close Jun 27
• SUP 1: 111.93 Low Jun 23
• SUP 2: 110.57 Low Jun 21
• SUP 3: 109.89/60 Low Jun 16 / 4.50 proj of May 19 - 24 - 26 swing
• SUP 4: 109.33 Low Jul 8 2014 (cont)

Gilt futures rallied sharply higher last Thursday and these gains continue to suggest scope for a stronger short-term recovery. Resistance at 113.25, the Jun 15 high, was breached last week and price also traded through the 20-day EMA. This has opened 115.55, Jun 6 high. Gains are still considered corrective though and the primary trend direction is down. A return lower would refocus attention on 109.89, the Jun 16 low and bear trigger.