TNOTE10Y dominated by bulls lifting the market higher throughout the day
U.S. 10-Year T-Note (TNOTE10Y) Technical Analysis Report for Mar 27, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, TNOTE10Y ended the week 0.97% higher at 138.719 after gaining $1.375 (1.0%) 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 138.016, the market confirmed its breakout through the prior session high after trading up to $0.734 above it intraday.
Daily Candlestick Chart (TNOTE10Y as at Mar 27, 2020):
Friday's trading range has been $1.406 (1.02%), that's below the last trading month's daily average range of $1.872. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for TNOTE10Y.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on March 20th, TNOTE10Y gained 0.51% on the following trading day.
Prices are trading close to the key technical resistance level at 139.219 (R1). After having been unable to move lower than 137.219 in the previous session, 10Y T-Note found buyers again around the same price level today at 137.344.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 140.750, upside momentum could accelerate should the contract be able to break out to new highs for the year.
Among the eight 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 10Y T-Note. Out of 663 times, TNOTE10Y closed higher 51.43% 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 57.16% with an average market move of 0.17%.
With four out of the other four Bond Markets closing higher today, the ones that stand out on the positive side are TBOND gaining 1.78% and BUND closing 1.05% higher. None of the markets ended the day in the red. Read more