SILVER TECHS: Bearish Cycle

• RES 4: 1.3967 High Mar 31 and a key M/T resistance 
• RES 3: 1.3949 High Apr 3 
• RES 2: 1.3934 1.0% 10-dma envelope
• RES 1: 1.3870 High May 28
• PRICE: 1.3836 @ 08:10 BST Jun 2
• SUP 1: 1.3741 50-day EMA  
• SUP 2: 1.3643 Low May 8
• SUP 3: 1.3550 Low May 1
• SUP 4: 1.3526 Low Mar 9 

A bull cycle in USDCAD remains intact and price is trading closer to its recent highs. Attention is on 1.3869, 76.4% of the Mar 31  - May 1 bear leg. It has been pierced, a clear break of this hurdle would strengthen the current bullish theme and signal scope for a climb towards 1.3967, the Mar 31 high and a key medium-term resistance. Initial firm support to watch lies at 1.3741, the 50-day EMA.

The BTPs spread have been active in early trade, but no big clips as of yet.

• UBA: 21%.
• RXA: 30%.
• OEA: 26%.
• DUA: 26%.
• IKA: 20%.
• BTS: 18%.
• OAT: 17%.

• RES 4: 90.00 Round number resistance
• RES 3: 89.32.000 proj of the May 15 - 19 (high / low) price swing  
• RES 2: 89.02 2.764 proj of the May 15 - 19 (high / low) price swing   
• RES 1: 88.98 High May 28      
• PRICE: 87.85 @ Close Jun 1
• SUP 1: 87.62 Low Jun 1    
• SUP 2: 87.48 Low May 22  
• SUP 3: 86.70 Low May 21
• SUP 4: 84.98 Low May 15 and the bear trigger

The current short-term bull cycle in Gilt futures remains intact and last week’s move higher reinforces current conditions. The contract has traded through resistance at 88.08, the May 8 high. This signals scope for a climb towards 89.02, a Fibonacci projection. Initial support lies at 87.86, the May 28 low, ahead of the May 22 low at 87.48. Key support has been defined at 84.98, the May 15 low.