Best Financial Markets Analysis Article We have been and remain strong bears of the US TNote. But the immediate election notwithstanding, the UK Gilts too appear to be setting themselves up nicely for the bears…

The Technical Trader’s view:

Monthly chart

The market’s pull back from the double failure gained great bear momentum when the Prior High at 116.08 the completion level of a Double Bottom proved not to be a support of consequence.

Weekly chart

Note too, the Continuation Head and Shoulders pattern that completed at the end of 2009.

The market has dithered beneath that level. (Possibly forming a continuation Triangle?)

But the Neckline has certainly proved to be good resistance.

Yet, on the other hand, the bears will note the potential support from the Prior High at 112.57. Look closer.

DAILY Jun 10 CHART

The price action has been deceptively sideways since the middle of February.

Note the repeated bounce off the emphatic Fibonacci at the 113.50 level.

Note too, the importance of any breach of that level – that would complete a Head and Shoulders Top which would send the market on down hard – certainly with sufficient impetus to send the market on down through 113.57.

Watch the price action of the next few days carefully….

Mark Sturdy
John Lewis

Seven Days Ahead
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Mark Sturdy, John Lewis & Philip Allwright, write exclusively for Seven Days Ahead a regulated financial advisor selling professional-level technical and macro analysis and high-performing trade recommendations with detailed risk control for banks, hedge funds, and expert private investors around the world. Check out our subscriptions.

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