(H0) Gains Are Likely..........>

US 10YR FUTURE TECHS: (H0) Gains Are Likely Corrective

*RES 4: 130-04+ High Dec 3

*RES 3: 129-14 High Dec 12 and near-term bull trigger

*RES 2: 129-02 High Dec 13

*RES 1: 128-23 High Dec 17

*PRICE: 128-19+ @ 16:40 GMT, Dec 27

*SUP 1: 127-29 Low Dec 13 and bear trigger

*SUP 2: 127-18+ 1.618 projection of the Oct 3 to Nov 7 low from Dec 3 high

*SUP 3: 127-00 Round number support

*SUP 4: 126-31+ 1.764 projection of the Oct 3 to Nov 7 low from Dec 3 high

10yr futures are marginally firmer. The outlook though remains bearish with

attention on the 127-29 key support. A breach would confirm a resumption of the

broader downtrend and maintain the bearish price sequence of lower lows and

lower highs. This would open 127-18+, a Fibonacci projection and, the 127-00

level. On the upside, initial resistance is seen at 128-23+ however, a break

above 129-14, Dec 12 high is needed to reverse the outlook.