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 Hyerczyk is a U.S. based seasoned technical analyst and educator with over 40 years of experience in market analysis and trading, specializing in chart patterns and price movement. He is the author of two books on technical analysis and has a background in both futures and stock markets.
