TBOND finds buyers around 177.281 for the forth day in a row
U.S. Treasury Bond (TBOND) Technical Analysis Report for Mar 27, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, TBOND finished the week 1.47% higher at 180.625 after gaining $3.156 (1.78%) today on low volume. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 179.594, T-Bond confirmed its breakout through the previous session high after trading up to $1.375 above it intraday.
Daily Candlestick Chart (TBOND as at Mar 27, 2020):
Friday's trading range has been $3.688 (2.08%), that's below the last trading month's daily average range of $5.820. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for TBOND. Prices continued to consolidate within a tight trading range between 174.875 and 181.250 where it has been caught now for the whole last trading week.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
Buyers managed to take out the key technical resistance level at 177.781 (now S1), which is likely to act as support going forward. Prices are trading close to the key technical resistance level at 182.656 (R1).30-year Bond was bought again around 177.281 after having seen lows at 177.125, 177.188 and 176.625 in the last three trading sessions. Obviously there is something going on at that level. The last time this happened on November 25, 2019, TBOND gained 0.18% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling might speed up should prices move below the nearby swing low at 177.125 where further sell stops could get triggered.
Among the 13 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior three Lows" stand out. Its common bullish interpretation has been confirmed for T-Bond. Out of 22 times, TBOND closed higher 59.09% 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 63.64% with an average market move of 0.82%.
With four out of the other four Bond Markets closing higher today, the ones that stand out on the positive side are BUND gaining 1.05% and TNOTE10Y closing 1.0% higher. None of the markets ended the day in the red. Read more