10-Yr U.S. Treasury Notes (TY) Futures Technical Analysis – August 10, 2015 Forecast

After consolidating for two days inside a pair of 50% levels, September 10-Year U.S. Treasury Notes surged to the upside, putting the market in a position to challenge the recent main top at 127’29.5.

The first upside target today is a resistance cluster at 127’19.5 to 127’20.5. The next target is another resistance cluster at 127’24.5 to 127’26. Crossing to the strong side of the uptrending angle at 127’26 will put the market in a bullish position. This could also create enough upside momentum to challenge the main top at 127’29.5.

A trade through 127’29.5 will signal a resumption of the uptrend. The next potential targets over this main top are 129’05 and 129’16.

Crossing to the weak side of the downtrending angle at 127’09.5 will signal the presence of sellers. This could create enough downside momentum to challenge the 50% level at 127’01. This is a trigger point for a potential acceleration to the downside with the next target a support cluster at 126’20 to 126’18.

Trader reaction to 127’19.5 to 127’20.5 should set the tone of the day and perhaps the near-term. If this area is rejected and the market closes lower, then a secondary lower top may form. This could lead to an eventual shift in sentiment to the downside.