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(U4) Bearish Cycle

GILT TECHS
  • 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: 97.72 20-day EMA
  • PRICE: 96.90 @ Close Jul 2
  • 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. The contract remains soft and the move down does undermine a recent bullish theme. 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.

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