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‌‌(Z2)‌‌ Corrective Bounce

US 10YR FUTURE TECHS
  • RES 4: 113-18 50-day EMA
  • RES 3: 112-22+ High Oct 6
  • RES 2: 111-28+ High Oct 13 and key near-term resistance
  • RES 1: 111-11 20-day EMA
  • PRICE: 110-26+ @ 15:35 BST Oct 25
  • SUP 1: 108-26+ Low Oct 21 and the bear trigger
  • SUP 2: 108-06+ Low Oct 2007 (cont)
  • SUP 3: 107.05 3.0% 10-dma envelope
  • SUP 4: 106-20+ Low Aug 2007 (cont)

Treasuries have recovered further off the Friday low. The primary trend is unchanged despite this bounce and remains lower. The extension lower last week confirmed a break of support at 110.02, Oct 13 low and the psychological 110.00 handle. This resumes the primary downtrend and marks an extension of the price sequence of lower lows and lower highs. The focus is on 108-20, a Fibonacci projection. Initial firm resistance has been defined at 111-28+, the Oct 13 high.

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