Mar 162012
Major resistance for the 10-year note is 2.40%
Near-term uptrend for the 10-year treasury with major resistance at 2.40%.  The new support level is 2.10% and the intermediate trend is sideways.

US Treasury 10-Year Yield Weekly Chart

U.S. Treasury 10-year note has been trading in an intermediate lateral band of 1.80% to 2.10% for the past six months. The reversal of roles is an important concept in technical analysis and the old resistance level of 2.1% is now the new support level. Can the index breakout above 2.4% which is a major resistance level that was tested last October? Or will the TNX ease into another lateral trading band with 2.10% as the new support level?

Reference the last chart analysis for the 10-year treasury based on the weekly chart when it was unable to break the resistance level of 2.40% last October.

“Unless you want to earn an inflation adjusted return of minus 2-3% as offered by Treasury bills, then you must take risk in some form.” Bill Gross

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Note: This technical analysis is for educational purposes so you can learn to trade online using candlestick charts. Please conduct your own chart analysis or consult your financial advisor before making investment decisions. The chart snippets are from which I recommend and have used for fifteen years. The author of this article may hold long or short positions in the featured stock or index.

© 2012

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