TBOND rockets 0.69% closing $1.093 higher
U.S. Treasury Bond (TBOND) Technical Analysis Report for Jan 21, 2020 | by Techniquant Editorial Team
TBOND finished Tuesday at 158.531 surging $1.093 (0.69%). This is the biggest single-day gain in over two weeks. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 157.562, T-Bond confirmed its breakout through the prior session high after trading up to $1.157 above it intraday.
Daily Candlestick Chart (TBOND as at Jan 21, 2020):
Tuesday's trading range has been $1.281 (0.81%), that's slightly above the last trading month's daily average range of $1.164. Things look different on the weekly timeframe, where the market's trading range of the last week has been below 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.
30-year Bond managed to close back above the 50-day moving average at 157.646. When this moving average was crossed above the last time on January 14th, TBOND gained 0.40% on the following trading day. Prices are trading close to the key technical resistance level at 159.062 (R1).
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might speed up should prices move above the nearby swing high at 158.781 where further buy stops could get activated. With prices trading close to this year's high at 159.594, upside momentum might accelerate should the Bond be able to break out to new highs for the year.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for T-Bond. Out of 720 times, TBOND closed higher 52.92% 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 54.03% with an average market move of 0.19%.
With four out of the other four Bond Markets closing higher today, the ones that stand out on the positive side are TNOTE10Y gaining 0.33% and BUND closing 0.26% higher. None of the markets ended the day in the red. Read more