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(U3) Key Support Remains Exposed

GILT TECHS
  • RES 4: 97.64 High Jun 1 and the reversal trigger
  • RES 3: 96.63/97.06 High Jun 9 / 6
  • RES 2: 96.31 High Jun 12
  • RES 1: 95.36 High Jun 16
  • PRICE: 94.72 @ Close Jun 16
  • SUP 1: 94.21/08 May 26 and the bear trigger / Low Jun 15
  • SUP 2: 94.00 Round number support
  • SUP 3: 93.45 1.618 proj of the Feb 2 - 28 - Mar 20 price swing (cont)
  • SUP 4: 92.19 1.764 proj of the Feb 2 - 28 - Mar 20 price swing (cont)

Gilt futures remain bearish and last week’s move lower reinforces current conditions. The contract has pierced support at 94.21, the May 26 low and bear trigger. A clear break of this level would confirm a resumption of the downtrend and open the 94.00 handle initially. Moving average studies are in a bear mode position reflecting current sentiment. Initial firm resistance is at 96.63, the Jun 9 high.

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