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(Z3) Bear Leg Extends

US 10YR FUTURE TECHS
  • RES 4: 111-12+ High Sep 1 key resistance
  • RES 3: 110-03+ High Sep19
  • RES 2: 108-20+ 20-day EMA
  • RES 1: 107-14 High Oct 3
  • PRICE: 106-17 @ 11:24 BST Oct 4
  • SUP 1: 106-00 Round number support
  • SUP 2: 105-27+ 3.0% Lower Bollinger Band
  • SUP 3: 105-27 2.0% lower 10-dma envelope
  • SUP 4: 104-26 2.00 proj of the Jul 18 - Aug 4 - Aug 10 price swing

A bear trend in Treasuries remains intact and the contract has traded to a fresh cycle low today. The extension confirms a resumption of the downtrend and maintains the bearish price sequence of lower lows and lower highs. Support at 107-07, the Sep 28 low, has been cleared this week signalling scope for the 106-00 handle next. Initial firm resistance is seen at 108-20+, the 20-day EMA. Short-term gains are considered corrective.

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