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(M3) Bearish Extension

US 10YR FUTURE TECHS
  • RES 4: 117-00 High May 4
  • RES 3: 115-18+/116-16 High May 16 / 11
  • RES 2: 114-05/114-25 High MAy 19 / 50-day EMA
  • RES 1: 113-30+ Low Apr 19 and a recent breakout level
  • PRICE: 113-10 @ 16:34 BST May 23
  • SUP 1: 112-30 61.8% retracement of the Mar 2 - 24 rally
  • SUP 2: 112-21 Low Mar 13
  • SUP 3: 111-31 76.4% retracement of the Mar 2 - 24 rally
  • SUP 4: 111-20+ Low Mar 10

Treasury futures remain soft and the contract is traded lower again Tuesday - albeit off the worst levels through the London close. The break of 113-30+ last week, the Apr 19 low and a key support, has strengthened a bearish theme. Tuesday’s move lower opens 112-30 next, a Fibonacci retracement. On the upside, initial resistance is seen at 113-30+ ahead of the 50-day EMA, at 114-25. A break of the average is required to signal a potential reversal.

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