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(U3) Bullish Engulfing Candle

US 10YR FUTURE TECHS
  • RES 4: 115-19 High May 18
  • RES 3: 115-07+ 50-day EMA
  • RES 2: 114-29+ 20-day EMA
  • RES 1: 114-15 High May 31
  • PRICE: 114-11 @ 16:29 BST May 31
  • SUP 1: 114-00 Intraday low
  • SUP 2: 112-29+ Low May 26 / 30
  • SUP 3: 112-16 76.4% retracement of the Mar 2 - May 4 rally
  • SUP 4: 111-20+ Low Mar 10

Treasury futures have recovered from the recent low of 112-29+ and the contract is higher Wednesday. A potential short-term reversal is taking place. Tuesday’s price pattern is a bullish engulfing candle and today’s move higher reinforces the pattern. It suggests scope for an extension towards the 50-day EMA at 115-07+. Clearance of the EMA would highlight a stronger reversal. Key support and the bear trigger is 112-29+, the 26 / 30 low.

MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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