May 14, 2024 15:40 GMT
(M4) Channel Resistance Remains Exposed
US 10YR FUTURE TECHS
- RES 4: 110-06 High Apr 4
- RES 3: 109-22+ 38.2% retracement of the Feb 1 - Apr 25 bear leg
- RES 2: 109-09+ High May 3
- RES 1: 109-06+/08+ Channel top from Feb 1 high / 50-day EMA
- PRICE: 108-30 @ 16:11 BST May 14
- SUP 1: 108-20+ 20-day EMA
- SUP 2: 107-04 Low Apr 25
- SUP 3: 106-27 2.764 proj of Dec 27 - Jan 19 - Feb 1 price swing
- SUP 4: 106-09 Base of a bear channel drawn from the Feb 1 low
Treasuries underwent whipsaw price action Tuesday on the back of a mixed PPI release. Despite a brief sell-off, piercing the 20-day EMA, prices returned higher ahead of the close to keep Treasuries in consolidation mode. This keeps the technical parameters unchanged for now, with resistance above at 109-06, the 50-day EMA. Price is also just below the channel top drawn from the Feb 1 high. Clearance of these two resistance points would strengthen a bullish condition.
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