TBOND breaks above 100-day moving average for the first time since December 3, 2019
U.S. Treasury Bond (TBOND) Technical Analysis Report for Jan 23, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, TBOND finished Thursday at 159.625 gaining $0.813 (0.51%). Today's close at 159.625 marks the highest recorded closing price since December 3, 2019. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 159.031, the market confirmed its breakout through the prior session high after trading up to $0.938 above it intraday.
Daily Candlestick Chart (TBOND as at Jan 23, 2020):
Thursday's trading range has been $1.188 (0.75%), that's slightly above the last trading month's daily average range of $1.166. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for TBOND.
One bullish candlestick pattern matches today's price action, the White Candle.
30-year Bond managed to close above the 100-day moving average at 158.908 for the first time since December 3, 2019. When this moving average was crossed above the last time on December 3, 2019, TBOND actually lost -0.68% on the following trading day. Prices are trading close to the key technical resistance level at 160.125 (R1).
Crossing above the upper Bollinger Band for the first time since January 15th, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 157.513 or signal the beginning of a strong momentum breakout leading to even higher prices.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Further buying could move prices higher should the market test December's nearby high at 160.406.
With four out of the other four Bond Markets closing higher today, the ones that stand out on the positive side are BUND gaining 0.31% and TNOTE10Y closing 0.23% higher. None of the markets ended the day in the red. Read more