TBOND finds buyers again around 171.688
U.S. Treasury Bond (TBOND) Technical Analysis Report for Oct 23, 2020 | by Techniquant Editorial Team
TBOND finished the week -1.27% lower at 172.625 after gaining $0.594 (0.35%) today. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (TBOND as at Oct 23, 2020):
Friday's trading range has been $1.093 (0.64%), that's slightly below the last trading month's daily average range of $1.170. Things look different on the weekly timeframe, where the market's trading range of the last week has been 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.
Prices are trading close to the key technical resistance level at 173.500 (R1). After having been unable to move lower than 171.781 in the previous session, the market found buyers again around the same price level today at 171.688.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and might now be heading back up towards the mean of the Bollinger Bands at 174.622. The last time this happened on October 9th, TBOND gained 0.20% on the following trading day.
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior low" stand out. Its common bullish interpretation has been confirmed for T-Bond. Out of 655 times, TBOND closed higher 53.44% 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 55.73% with an average market move of 0.25%.
With two of the other Bond Markets closing higher and two closing lower today, the winners of the day are BUND surging 0.1% and TNOTE10Y gaining 0.02%. On the flipside the worst performers have been TNOTE2Y closing -0.01% lower and TNOTE5Y losing -0.01%. Read more