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(Z0) Bear Flag

US 5YR FUTURE TECHS
  • RES 4: 126-06+ High Sep 3 and the bull trigger
  • RES 3: 126-046 High Sep 30
  • RES 2: 125-292 50-day EMA
  • RES 1: 125-272 High Oct 6
  • PRICE: 125-24 @ 11:19 BST Oct 13
  • SUP 1: 125-202 Low Oct 7 and the bear trigger
  • SUP 2: 125-16+ 1.00 proj of Aug 4 - 13 sell-off from Sep 3 high
  • SUP 3: 125-112 1.236 proj of Aug 4 - 13 sell-off from Sep 3 high
  • SUP 4: 125-08 1.382 proj of Aug 4 - 13 sell-off from Sep 3 high

5yr futures traded sharply lower recently but have found room to consolidate. The recent pause has taken on the appearance of a bear flag formation. This is a continuation pattern and suggests that further bearish pressure is likely to dominate near-term. On Oct 7, futures probed key support at 125-216, Aug 28 low. This also reinforces bearish conditions and a clear break would open 125-16+, a Fibonacci projection. Resistance is at 125-272, Oct 6 high.

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