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10-Yr U.S. Treasury Notes (TY) Futures Technical Analysis – October 31, 2014 Forecast

By:
James Hyerczyk
Updated: Aug 25, 2015, 07:00 UTC

The announcement by the Bank of Japan of additional stimulus helped drive December 10-Year U.S. Treasury Notes lower on Friday, but it didn’t seem to be

Daily December 10-Year U.S. Treasury Notes

The announcement by the Bank of Japan of additional stimulus helped drive December 10-Year U.S. Treasury Notes lower on Friday, but it didn’t seem to be strong enough to offset the slightly hawkish U.S. Federal Open Market Committee monetary policy announcement from earlier in the week.

Daily December 10-Year U.S. Treasury Notes
Daily December 10-Year U.S. Treasury Notes

The main range is 123’16 to 130’17. Its retracement zone at 127’00.5 to 126’06 is currently being tested and holding as support.

Even if 126’06 is taken out, an uptrending angle at 126’02 could provide support. However, if this level is taken out with conviction, the market could accelerate to the downside with the next target at 125’12.

Holding the 126’06 to 126’02 support cluster could lead to a short-covering rally back to the Fibonacci level at 127’00.5. Don’t get too excited about the upside, however, unless buyers can overcome the uptrending angles at 127’08 and 127’10. Look for an acceleration to the upside if 127’17 is taken out.

The tone of the market today will be determined by trader reaction to the support cluster at 126’06 to 126’02. 

About the Author

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.

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