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(U3) Bearish Engulfing Candle

US 10YR FUTURE TECHS
  • RES 4: 115-19 High May 18
  • RES 3: 115-07+ 1.0% 10-dma Envelope
  • RES 2: 115-04 50-day EMA
  • RES 1: 113-24+/115-00 Intraday high / High Jun 1
  • PRICE: 113-14 @ 11:43 BST Jun 5
  • SUP 1: 113-12+ Intraday low
  • SUP 2: 112-29+ Low May 26 / 30 and key support
  • SUP 3: 112-16 76.4% retracement of the Mar 2 - May 4 rally
  • SUP 4: 111-20+ Low Mar 10

Treasury futures faltered Friday and have extended the pullback from 115-00, the Jun 1 high. A bearish engulfing candle on Friday signals the end of the recent recovery and suggests potential for a continuation lower. Attention is on key short-term support and the bear trigger at 112-29+, the May 26 / 30 low. A break of this level would resume the downtrend since May 4. Key resistance is at 115-00, where a break is required to reinstate a bullish theme.

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