Wednesday, April 20, 2016

Ten Year Treasury; Cash and Future Levels

Ten Year Treasury - Cash Levels

Cash Tens (1-5/8th of 2-26) have consolidated since the start of the month, generally ranging from 98-16 to 99-16.  Having achieved 98-16 early in the month, a shave below at 98-15 has shown as support.  A ‘Harami’ top on the 7th marks resistance at 99-13+ to 99-15.  A settle at or above 99-04 would suggest a test of the 99-15 April 7 high and a settle above that level opens the way for a test of the Feb 11th high of 100-28+.  Below, a settle below 98-15 would suggest a test of support at 97-27+.  Finally, while an upside break-out (above 99-04) would draw added bullish interest; gains from there are more likely to be challenged and thus slower.  However, a clear break below 98-15 would likely find aggressive selling and quite likely a quicker move to the 97-27+ support.    
Support:  98-15; 97-27+
Resistance: 99-04; 99-13+