TBOND pushes through Monday's high
U.S. Treasury Bond (TBOND) Technical Analysis Report for Jan 14, 2020 | by Techniquant Editorial Team
TBOND finished Tuesday at 157.969 gaining $0.750 (0.48%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 157.719, T-Bond confirmed its breakout through the previous session high after trading up to $0.281 above it intraday.
Daily Candlestick Chart (TBOND as at Jan 14, 2020):
Tuesday's trading range has been $1.062 (0.68%), that's slightly below the last trading month's daily average range of $1.217. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for TBOND.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern.
The Bond managed to close back above the 50-day moving average at 157.550. Prices are trading close to the key technical resistance level at 158.281 (R1). After having been unable to move lower than 156.875 in the prior session, the market found buyers again around the same price level today at 156.938. The last time this happened on December 31, 2019, TBOND gained 0.72% on the following trading day.
Though the contract is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for T-Bond. Out of 441 times, TBOND closed higher 53.74% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 56.01% with an average market move of 0.17%.
With four out of the other four Bond Markets closing higher today, the ones that stand out on the positive side are TNOTE10Y gaining 0.23% and TNOTE5Y closing 0.11% higher. None of the markets ended the day in the red. Read more