December Treasury Bonds turned the daily main trend down on Monday with its trade through the last swing bottom at 139’26. This move confirms the asset allocation shift that has been taking place over the past two weeks.
December Treasury Bonds Turned Daily Main Trend Down on Trade Through 139’26.
Based on the main range of 120’28 to 147’00, traders should expect a minimum retracement back to the 50% level at 133’30. This isn’t expected to be a fast move to this level. The market may make a retracement of the short-term break from 146’13 to 138’19 before resuming the break. This target zone is a combination 50% and 61.8% retracement at 142 ’13 and 143’11. Look for short-traders to show up if this zone is tested.
Currently, an uptrending Gann angle at 138’20 is providing short-term support. This angle is moving up 8/32 per day. Once penetrated with conviction, the market should begin to feel some selling pressure.
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