2011 December Treasury Bond Chart featuring the Gann Swing Chart and Gann Angles
Thursday’s weakness helped the December Treasury Bonds form a secondary lower top at 146’13. The first top is the main top at 147’00. Based on this current set-up, the main trend will turn down on the daily chart when the market crosses the last main bottom at 139’26.
A move through this level is likely to trigger a further decline into the uptrending Gann angle from the 120’28 main bottom. This angle is currently at 137’28. If this angle fails as support then this should serve as a sign that the market is headed lower.
Based on the main range of 120’28 to 147’00, the main objective of any major correction is 50% of this range. This price target is 133’30. Because of the numerous bottoms at 139’26, 138’22, 135’01 and 134’26, the break may be labored, highlighted by “back-and-fill” trading action unless the news driving the market is so bearish as to encourage liquidation selling.
