BTP TECHS: (U5) Trading Inside A Range

• RES 4: 122.71 2.764proj of the May 14 - 20 - 21 price swing
• RES 3: 122.35 2.500 proj of the May 14 - 20 - 21 price swing 
• RES 2: 122.00 Round number resistance
• RES 1: 121.22/121.73 20-day EMA / High Jun 13 and the bull trigger
• PRICE: 121.20 @ Close Jul 21
• SUP 1: 119.84 Low Jul 14 and key short-term support        
• SUP 2: 119.48 Low May 26 
• SUP 3: 118.87 Low May 21  
• SUP 4: 118.51 Low May 14 and key support 

The primary trend condition in BTP futures is unchanged, it remains bullish. Monday’s strong rally reinforces this theme. Key short-term support has been defined at 119.84, the Jul 14 low. A break of this level is required to reinstate a short-term bearish threat. On the upside, resistance and the bull trigger to watch is 121.73, the Jun 13 high. Clearance of this level would resume the uptrend.

• MNI: UK JUN PSNCR GBP-16.11 BN
• UK JUN CGNCR GBP15.68 BN
• UK JUN PSNB-X GBP+20.68 BN
• UK JUN PSNB GBP+20.68 BN

• RES 4: 93.41 High Jul 2      
• RES 3: 93.00 Round number resistance      
• RES 2: 92.79 High Jul 4  
• RES 1: 91.97/92.24 20-day EMA / HIgh Jul 15
• PRICE: 91.78 @ Close Jul 21 
• SUP 1: 91.08 Low Jul 18   
• SUP 2: 90.97 76.4% retracement of the May 22 - Jul 1 bull leg
• SUP 3: 90.59 Low May 29   
• SUP 4: 90.46 Low May 23        

A bear cycle in Gilt futures remains in play and for now, Monday’s strong gains are considered corrective. Recent weakness resulted in a break of support at 91.63, the Jul 2 low. Price has also traded through 91.50, the 61.8% retracement of the May 22 - Jul 1 bull leg. The move down exposes 90.97, the 76.4% retracement point. Clearance of this level would strengthen a bearish theme. Initial firm resistance is at 91.97, the 20-day EMA.