T-Note needs to break above 125.05 – Natixis

Natixis Fixed Income Weekly Technical note says the T-Note contract is set to test resistance at 125.05, where a failure would increase the risk of a pull back.

Key points

The turnaround of the daily indicators can be expected to bolster the contract and enable it to test the resistance at 125.05 (upper band of daily Bollinger). There will need to be a breakout above this last level to lessen the risk of a new pullback towards the support around 123.18-123.20 (lower band of daily Bollinger), opening the way instead for a lasting rebound towards 125.24 (Fibonacci projection) before the resistance at 126.11 (weekly Bollinger moving average).

A breakout above this last level would instill strong upward momentum towards 127.12 (Fibonacci projection). Supports are located at 124.14, at 124, around 123.18-123.20 and at 123.04.

Contract is set to test 125.05. There will need to be a breakout above this last level to open the way for a lasting rebound towards 125.24 before 126.11.