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(Z0) Further Appreciation Likely

US 5YR FUTURE TECHS
  • RES 4: 126-006 76.4% retracement of the Sep 30 - Oct 7 sell-off
  • RES 3: 125-316 High Oct 5
  • RES 2: 125-30+ 61.8% retracement of the Sep 30 - Oct 7 sell-off
  • RES 1: 125-31 High Oct 15
  • PRICE: 125-28+ @ 11:24 BST Oct 16
  • SUP 1: 125-262 Low Oct 15
  • SUP 2: 125-23+ Low Oct 13
  • SUP 3: 125-202 Low Oct 7 and the bear trigger
  • SUP 4: 125-16+ 1.00 proj of Aug 4 - 13 sell-off from Sep 3 high

5yr futures extended the current rally yesterday before finding resistance and giving back the day's gains. Despite this, the outlook remains bullish. This week's climb marks a potential reversal of the recent sell-off between Sep 30 and Oct 7. Futures have traded above resistance defined by the 20- and 50-day EMAs. A clear break would reinforce a bullish theme and open 125-316, Oct 5 high. Initial support is at 125-262, yesterday's low.

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