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(U3) Corrective Cycle Remains In Play

GILT TECHS
  • RES 4: 98.95 Low May 18
  • RES 3: 98.80 High May 22
  • RES 2: 98.00 Round number resistance
  • RES 1: 97.78 High May 23
  • PRICE: 96.52 @ Close Jun 6
  • SUP 1: 95.93 50.0% retracement of the May 26 - Jun 1 rally
  • SUP 2: 94.91/21 Low May 30 / 26 and the bear trigger
  • SUP 3: 94.00 Round number support
  • SUP 4: 93.45 1.618 projection of the Feb 2 - 28 - Mar 20 swing (cont)

Gilt futures are trading closer to recent lows. The recent recovery from 94.21, the May 26 low, has allowed an oversold trend condition to unwind. Gains are considered corrective and the trend direction remains down. Moving average studies are in a bear-mode position highlighting a bear cycle. A resumption of weakness would open the 94.00 handle next. The bear trigger is 94.21, the May 26 low. Initial resistance to watch is at 97.78, the May 23 high.

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