TBOND closes higher for the 5th day in a row
U.S. Treasury Bond (TBOND) Technical Analysis Report for Jan 27, 2020 | by Techniquant Editorial Team
Moving higher for the 5th day in a row, TBOND ended Monday at 162.031 surging $1.500 (0.93%) on high volume. This is the biggest single-day gain in over three weeks. Today's close at 162.031 marks the highest recorded closing price since October 9, 2019. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (TBOND as at Jan 27, 2020):
Monday's trading range has been $1.219 (0.76%), that's slightly below the last trading month's daily average range of $1.261. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for TBOND.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on January 24th, TBOND gained 0.93% on the following trading day.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day while might signal a potential change in momentum that could lead to a correction back down towards the center of the Bollinger Bands at 157.967.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Gap Up" stand out. Its common bullish interpretation has been confirmed for T-Bond. Out of 3 times, TBOND closed higher 66.67% 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 66.67% with an average market move of 1.38%.
With four out of the other four Bond Markets closing higher today, the ones that stand out on the positive side are TNOTE10Y gaining 0.48% and BUND closing 0.46% higher. None of the markets ended the day in the red. Read more