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(U3) Bearish Engulfing Candle Still In Play

US 10YR FUTURE TECHS
  • RES 4: 115-19 High May 18
  • RES 3: 115-06 1.0% 10-dma Envelope
  • RES 2: 115-02+ 50-day EMA
  • RES 1: 114-22 / 115-00 20-day EMA / High Jun 1
  • PRICE: 113-25 @ 16:39 BST Jun 6
  • SUP 1: 113-10 Low Jun 05
  • 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 last Friday and have remained below last week’s 115-00 high. Friday’s price action also resulted in a bearish engulfing candle at the close, signalling the end of the recent recovery and suggesting potential for a continuation lower. Attention is on key support and the bear trigger at 112-29+, the May 26 / 30 low. A break would resume the downtrend since May 4. Clearance of 115-00, is required to reinstate a bullish theme.

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