10-Yr U.S. Treasury Notes (TY) Futures Technical Analysis – May 30, 2014 Forecast

June 10-Year U.S. Treasury Notes followed through to the downside in the pre-market session, confirming Thursday’s potentially bearish closing price reversal top. This could lead to the start of a 2 to 3 day break, but not necessarily a change in trend.

The main range is 124’20.5 to 126’24.5. The retracement zone created by this range and next likely downside target is 125’22.5 to 125’14.5. Since the main trend is up on the daily chart, look for buyers to come in to defend the trend on a test of this zone.

Overnight support was provided by an uptrending angle from the 124’20.5 bottom, moving up at a pace of 4/32nds per day. This angle is at 126’04.5. Traders bought the first test of this angle, but taking it out later in the session could trigger an acceleration down to at least the 50% level at 125’22.5.

If 126’04 holds as support then look for an intraday retracement back to 126’12. Stopping the market here may set up a short-term secondary lower top.