(U4) Bear Threat Remains Present Despite A Bounce

• RES 4: 100.00 Psychological round number
• RES 3: 99.62 1.382 proj of the May 29 - Jun 4 - 10 price swing
• RES 2: 98.24/99.25 High Jun 28 / 1.236 proj May 29-Jun 4-10 swing
• RES 1: 97.78 High Jul 3
• PRICE: 97.70 @ Close Jul 3
• SUP 1: 96.57 Low Jul 1
• SUP 2: 96.25 76.4% retracement of the May 29 - Jun 21 bull run
• SUP 3: 96.12 Low Jun 10
• SUP 4: 95.33 Low May 29 and a key support

Gilt futures traded sharply lower Monday, confirming an extension of the latest bear cycle. Despite yesterday’s gains, the short-term outlook remains bearish. The sell-off signals scope for a continuation near-term towards 96.25, a Fibonacci retracement, where a break would further strengthen a bearish threat. On the upside, initial firm resistance to watch is at 98.24, the Jun 28 high. A break would instead be seen as a bullish development.