TBOND closes higher for the 2nd day in a row
U.S. Treasury Bond (TBOND) Technical Analysis Report for Jan 22, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, TBOND finished Wednesday at 158.812 gaining $0.281 (0.18%). Today's close at 158.812 marks the highest recorded closing price since December 3, 2019. Trading up to $0.344 lower after the open, 30-year Bond managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Tuesday's high at 158.719, the Bond confirmed its breakout through the previous session high after trading up to $0.312 above it intraday.
Daily Candlestick Chart (TBOND as at Jan 22, 2020):
Wednesday's trading range has been $0.875 (0.55%), that's slightly below the last trading month's daily average range of $1.156. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for TBOND.
After spiking up to 159.031 during the day, the market found resistance at the 100-day moving average at 158.963. The last time this happened on January 8th, TBOND actually gained 0.36% on the following trading day.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
With prices trading close to this year's high at 159.594, upside momentum could speed up should T-Bond be able to break out to new highs for the year. Further buying might move prices higher should the market test December's close-by high at 160.406.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bullish Intraday Reversal" stand out. Its common bullish interpretation has been confirmed for T-Bond. Out of 399 times, TBOND closed higher 50.88% 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 51.13% with an average market move of 0.04%.
With two out of the other four Bond Markets closing higher today, the ones that stand out on the positive side are BUND gaining 0.16% and TNOTE5Y closing 0.01% higher. On the flipside the worst performer has been TNOTE10Y closing -0.01% lower. Read more