10-Yr U.S. Treasury Notes (TY) Futures Technical Analysis – October 23, 2014 Forecast

December 10-Year U.S. Treasury Notes finished lower on Wednesday. The main trend is 123’16 to 130’17. Its retracement zone at 126’31 to 126’04.5 is the next likely downside target. Since the main trend is up on the daily chart, buyers may come in to try to support the market inside this zone.

A pair of uptrending angles from previous bottoms pass through the zone at 126’18 and 126’16. Making them valid targets also.

The key level to watch on the upside is 128’10. Overtaking this angle will put T-Bonds in a strong position to rally. If there is enough upside momentum created by this move then look for a further rally into the next angle at 129’16.

The tone of the market today will be determined by trader reaction to the 50% level at 126’31. This means there may be an early downside bias, but profit-takers or value-seekers may buy a break into this level. This could produce a technical bounce on the first test of 126’31. Look for further downside action if this price fails as support.