TBOND closes higher for the 2nd day in a row
U.S. Treasury Bond (TBOND) Technical Analysis Report for Oct 26, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, TBOND finished Monday at 173.531 gaining $0.906 (0.52%). Closing above Friday's high at 172.781, T-Bond confirmed its breakout through the previous session high after trading up to $1.157 above it intraday.
Daily Candlestick Chart (TBOND as at Oct 26, 2020):
Monday's trading range has been $1.250 (0.72%), that's slightly above the last trading month's daily average range of $1.203. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below 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. The last time a White Candle showed up on October 23rd, TBOND gained 0.52% on the following trading day.
Buyers managed to take out the key technical resistance level at 173.500 (now S1), which is likely to act as support going forward. After spiking up to 173.938 during the day, 30-year Bond found resistance at the 200-day moving average at 173.574.
While 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 "Bearish Bounce off SMA 200" stand out. Its common bearish interpretation has been confirmed for T-Bond. Out of 10 times, TBOND closed lower 60.00% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 70.00% with an average market move of -0.16%.
With three out of the other four Bond Markets closing higher today, the ones that stand out on the positive side are TNOTE10Y gaining 0.23% and TNOTE5Y closing 0.09% higher. None of the markets ended the day in the red. Read more