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(U3) Corrective Cycle Still 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: 96.44 @ Close Jun 5
  • 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 have recently recovered from 94.21, the May 26 low, allowing an oversold trend condition to unwind. Gains are considered corrective and the primary short-term trend condition remains bearish. 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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