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(Z2)‌‌ Fresh Trend Lows

US 10YR FUTURE TECHS
  • RES 4: 115-13+ Low Sep 7
  • RES 3: 114-31+ 38.2% retracement of the Aug 2 - Sep 28 bear leg
  • RES 2: 112-25+/113-30 20-day EMA / High Oct 4 and the bull trigger
  • RES 1: 111-28+ Intraday high
  • PRICE: 110-06 @ 14:11 BST Oct 13
  • SUP 1: 110-00 Psychological Support
  • SUP 2: 109-23+ Low Nov 30 2007 (cont)
  • SUP 3: 108.23 3.0% 10-dma envelope
  • SUP 4: 108-20 1.00 projection of the Oct 4 - 11 - 13 price swing

Treasuries have broken out of this week’s consolidative range and this has resulted in a break of support at 110-19, the Sep 28 low and bear trigger. This confirms a resumption of the downtrend and maintains the primary trend sequence of lower and lower highs. The focus is on the psychological 110.00 handle where a break would further reinforce bearish conditions. On the upside, initial key resistance is at 112-25+, the 20-day EMA.

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