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(Z3) Bounce Fades as CPI Boosts Yields

  • RES 4: 109-12+ 50-day EMA
  • RES 3: 108-26+ High Sep 22
  • RES 2: 108-14+ High Sep 29
  • RES 1: 108-11 High Oct 11
  • PRICE: 107-14+ @ 16:40 BST Oct 12
  • SUP 1: 106-14 2.0% Lower Bollinger Band
  • SUP 2: 106-03+/00 Low Sep 4 / Round number support
  • SUP 3: 105-11 2.0% 10-dma envelope
  • SUP 4: 104-26 2.00 proj of the Jul 18 - Aug 4 - Aug 10 price swing

Markets traded firmer through the 20-day EMA Wednesday, further building momentum and signalling a possible base at the early October lows. The near-term strength stalled on Thursday, however, with prices under pressure as CPI topped estimates. For bears to regain control, weakness through 106-12 would signal a fade in the short-term momentum, and open further losses. The near-term upside opens for further gains toward late September levels at 108-14+, the Sep29 high. With last week’s lows yet to be re-tested, a further stabilisation in prices could signal a near-term reversal higher.

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