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(Z2)‌‌ Trend Conditions Remain Bearish

  • RES 4: 115-13+ Low Sep 7
  • RES 3: 114-31+ 38.2% retracement of the Aug 2 - Sep 28 bear leg
  • RES 2: 112-14/113-30 20-day EMA / High Oct 4 and the bull trigger
  • RES 1: 111-28+ High Oct 12
  • PRICE: 110-24 @ 19:42 BST Oct 20
  • SUP 1: 110-00 Psychological Support
  • SUP 2: 109-23+ Low Nov 30 2007 (cont)
  • SUP 3: 108-18+ 1.00 projection of the Oct 4 - 11 - 13 price swing
  • SUP 4: 108.14 3.0% 10-dma envelope

Treasuries remain vulnerable. Last week, the contract breached 110-19, the Sep 28 low and bear trigger. This resulted in a break out of the recent consolidative range and highlights a resumption of the downtrend plus maintains the price sequence of lower and lower highs. The focus is on 110.00, a break would strengthen bearish conditions. Initial key resistance is at 112-14, the 20-day EMA. Gains would be considered corrective.

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