TBOND closes higher for the 2nd day in a row
U.S. Treasury Bond (TBOND) Technical Analysis Report for Jun 29, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, TBOND finished Monday at 179.250 edging higher $0.250 (0.14%). Today's close at 179.250 marks the highest recorded closing price since May 14th. Trading up to $0.406 lower after the open, 30-year Bond managed to reverse during the session as bulls took control ending the day above its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (TBOND as at Jun 29, 2020):
Monday's trading range has been $0.656 (0.37%), that's far below the last trading month's daily average range of $1.670. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for TBOND.
Two candlestick patterns are matching today's price action, the Bullish Spinning Top which is known as bullish pattern and one bearish pattern, the Hanging Man. The last time a Hanging Man showed up on February 17th, TBOND actually gained 0.35% on the following trading day.
Prices are trading close to the key technical support level at 178.406 (S1). After having been unable to move above 179.250 in the prior session, the contract ran into sellers again around the same price level today, failing to move higher than 179.406.
T-Bond shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Trading close to April's high at 181.469 we could see further upside momentum if potential buy stops at the level get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Hanging Man" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for T-Bond. Out of 57 times, TBOND closed higher 57.89% of the time on the next trading day after the market condition occurred.
With three out of the other four Bond Markets closing higher today, the ones that stand out on the positive side are TNOTE10Y gaining 0.15% and TNOTE5Y closing 0.12% higher. On the flipside the worst performer has been BUND closing -0.11% lower. Read more