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(U4) Bull Cycle Extends

GILT TECHS
  • RES 4: 98.89 High May 16 a key resistance
  • RES 3: 98.25 High May 21
  • RES 2: 98.04 76.4% retracement of the May 16 - 29 bear cycle
  • RES 1: 97.86 High Jun 4
  • PRICE: 97.59 @ Close Jun 4
  • SUP 1: 97.08 Low Jun 4
  • SUP 2: 96.26 Low Jun 3
  • SUP 3: 95.33 Low May 29 and the bear trigger
  • SUP 4: 95.00 Round number support

Gilt futures traded higher Monday as the contract extends the recovery from 95.33, the May 29 low. For now, gains are considered corrective. Last week’s sell-off resulted in a break of support at 95.87, the May 1 low. The clear break strengthens a bearish theme and signals scope for an extension towards 95.17 next, a Fibonacci projection. The next resistance to watch is 98.04, a Fibonacci retracement point.

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