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(Z3) Tuesday Rally Looks Corrective in Nature

  • RES 4: 112-14 High Aug 10 and a key hort-term resistance
  • RES 3: 112-00 Round number resistance
  • RES 2: 111-13+ High Aug 11
  • RES 1: 110-20/23+ 20-day EMA/High Aug 29
  • PRICE: 110-23 @ 16:23 BST Aug 29
  • SUP 1: 109-18+/09+ Low Aug 25 / 22 and the bear trigger
  • SUP 2: 108-20 1.000 proj of the Jul 18 - Aug 4 - Aug 10 price swing
  • SUP 3: 107.23 1.236 proj of the Jul 18 - Aug 4 - Aug 10 price swing
  • SUP 4: 107-05+ 1.382 proj of the Jul 18 - Aug 4 - Aug 10 price swing

The trend direction in Treasuries remains down and short-term gains posted Tuesday are considered corrective. The recent break of 110-09, the Aug 4 low, confirmed a continuation of the downtrend. Note too that moving average studies continue to highlight a dominant downtrend as market sentiment remains bearish. The focus is on 108.20, a Fibonacci projection. Firm resistance at 110-20, the 20-day EMA, has been pierced, raising focus on the close. Gains are considered corrective for now.

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