June 03, 2024 05:49 GMT
(U4) Impulsive Bear Cycle Remains Intact
GILT TECHS
- RES 4: 98.25 High May
- RES 3: 98.12 High May 17
- RES 2: 97.44 High May 23 and a key near-term hurdle
- RES 1: 96.44 High May 31
- PRICE: 96.32 @ Close May 31
- SUP 1: 95.33 Low May 29
- SUP 2: 95.17 2.382 proj of the May 16 - 20- 21 price swing
- SUP 3: 95.02 2.50 proj of the May 16 - 20- 21 price swing
- SUP 4: 94.87 2.618 proj of the May 16 - 20- 21 price swing
Gilt futures traded sharply lower last week as the contract extended the reversal that started May 16. The sell-off resulted in a break of support around 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. Initial firm resistance to watch is 97.44, the May 23 high. First resistance is Friday’s high of 96.44.
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