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(U3) Has Pulled Back From Recent Highs

GILT TECHS
  • RES 4: 98.80 High May 22
  • RES 3: 98.00 Round number resistance
  • RES 2: 97.64 High Jun 1
  • RES 1: 97.06 High Jun 6
  • PRICE: 96.20 @ Close Jun 7
  • SUP 1: 95.93 Low Jun 7 and 50.0% of the May 26 - Jun 1 rally
  • SUP 2: 95.52 61.8% of the May 26 - Jun 1 rally
  • SUP 3: 94.91/21 Low May 30 / 26 and the bear trigger
  • SUP 4: 94.00 Round number support

Gilt futures have pulled back from recent highs. The latest recovery from 94.21, May 26 low, has allowed an oversold 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 97.64, the May 23 high.

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