SILVER TECHS: Bullish Trend Condition

• RES 4: $37.478 - High Mar 2012  
• RES 3: $37.195 - 2.236 proj of the May 15 - 22 high / low price swing
• RES 2: $36.987 - 1.000 proj of the Apr 7 - 25 - May 15 price swing
• RES 1: $36.886 - High Jun 9 
• PRICE: $36.455 @ 08:13 BST Jun 16 
• SUP 1: $34.842 - 20-day EMA
• SUP 2: $33.743/31.651 - 50-day EMA / Low May 15
• SUP 3: $30.915/28.351 - Low Apr 11 / 7 and the bear trigger  
• SUP 4: $27.686 - Low Sep 6 ‘24  

A bull wave in Silver remains in play and recent strong gains plus last Monday’s extension, reinforce this condition. The metal has traded through a resistance at $34.903, the Oct 23 ‘24 high and a key bull trigger. The clear break of it marks an important medium-term bullish development. Sights are on $36.987 next, a Fibonacci projection. Initial support to watch lies at $34.842, the 20-day EMA.

ERZ5 98.31/98.37cs vs 97.93p, bought the cs for -0.25 (receive) in 2k.

J.P.Morgan have recommended a tactical short in 10-Year gilts

• They write “from a short-term relative valuation perspective 10Y gilt yields are rich vs. high frequency drivers”.
• Further out, they expect 10-Year gilt yields “to grind lower over the second half of this year as the BoE delivers gradual easing but ultimately think the magnitude of any rally is limited as the UK fiscal backdrop remains strained”.
• J.P.Morgan point to “further fiscal slippage as growth undershoots OBR forecasts with UK curve term premia to remain elevated and fiscal budget headroom to come back into focus around the Autumn budget”.