December 10-Year U.S. Treasury Notes followed through to the upside after taking out the May 1, 2013 top at 127’13, but the rally stalled when the market
December 10-Year U.S. Treasury Notes followed through to the upside after taking out the May 1, 2013 top at 127’13, but the rally stalled when the market reached a steep uptrending angle or the upper level of the channel. The angle moves up to 128’08 today.
Daily December 10-Year U.S. Treasury Notes
Falling back below the 127’13 level will be a sign of weakness. This could trigger a break into the lower level of the channel at 126’26. A failure at this price will break the channel and indicate a more serious break is coming.
Taking out 126’26 with conviction and sustaining the move could trigger an acceleration to the downside over the next few days with a pair of angles at 125’28 and 125’26 the next potential downside targets.
Watch the action in the stock indices too. If they begin to recover then selling pressure and profit-taking could begin to hit the T-Notes.
James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.
