This is the all sessions 10 Year Treasury note daily chart. Friday saw us take out the huge 117.25 level reaching a high of 117.29 before slipping back for the close. Things still look positive here as the nerves in Equity markets continue to fuel the flight to quality. The Bulls also defended the gap support perfectly last Wednesday at 116.055. We now have a Fibonacci Extension to target at 118.315 with 117.29 from Friday not looking to be too big a hurdle.
Indicators in Play
Gaps are created when the market opens above or below the previous days range. In a Bull market these gaps become strong support levels and this worked to the tick last Wednesday. In Technical Analysis these gaps are sometimes called windows and not least because as proven here they can be windows of opportunity for Bulls looking to buy dips..
Summary
117.15 emerged as support on the intra day chart late on Friday. It could be worth buying dips to here but some caution is required as this is based on low volume. 116.055 is the big level as gap hold support and only a move below here would see us exit the overall long strategy.
David has been
analyzing and trading the worlds financial markets for the past 25 years. After an initial grounding with Mercury Asset Management and Warburg Securities he went on to set up his own brokerage operation in London. Since then he has appeared regularly on Bloomberg Television and been involved in providing analytics on behalf of some of the worlds major exchanges. He is also a member of the Society of Technical Analysts.
Free Trading Education - Education for Trading Stocks, Futures, Forex,
Commodities and ETFs
ADVERTISING
Free Trading Education - Education for Trading Stocks, Futures, Forex,
Commodities and ETFs
