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(Z0)‌ Strong Reversal

US 10YR FUTURE TECHS
  • RES 4: 139-28 1.0% 10-dma envelope
  • RES 3: 139-26 High Sep 29 and a key resistance
  • RES 2: 139-14 Bull channel top drawn off the Aug 4 high
  • RES 1: 139-08+ Intraday high
  • PRICE: 139-04 @ 11:51 GMT Nov 5
  • SUP 1: 138-14+ 50% retracement of the Nov 4 -5 rally
  • SUP 2: 137-20+ Low Nov 4 and key support
  • SUP 3: 137-15 1.382 proj of Aug 4 - 28 decline from Sep 3 high
  • SUP 4: 137-08 1.500 proj of Aug 4 - 28 decline from Sep 3 high

Treasuries rallied sharply yesterday off 137-20+. Price as a result cleared trendline resistance at 138-29, drawn off the Oct 2 high. The break of the trendline was confirmed by a breach of resistance at 139-03, Oct 28 high and the recent bull trigger. The strong rally signals a more significant reversal of the entire decline since early August and attention turns to 139-14, the top of a bull channel drawn off the Aug 4 high. 137-20+ marks key support.

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