One more spike from weekly key support, then...
We have quite an interesting chart pattern development in US 10 Year T-Note futures!
Weekly:
- Ichimoku is back to neutral: Price down to Kumo and 100wma support. Price is well below 9 (Tenkan) and 26 (Kijun) weeks averages, Tenkan/Kijun cross is weak bearish.
- Heikin-Ashisignal has been swing bearish for last two weeks, but orice reached a strong weekly key support around 129'24
- EWO down to neutral
- MACD signal together with Price/Kijun relation tells the same story: bull market is probably over, but it is not yet bearish! We will probably see a few more weeks of sideaway price action before: either a bullish trend resumption or a strategic bearish reversal.
Daily:
- Ichimoku setup is bearish. Bearish supports are at: 130'20 and stronger zone between 131'06-131'20 (this is also weekly Kijun Sen)
- Hekin-Ashi signals start of a pull back. If you followed my on Twitter, there I already showed you the 4H positive divergences yesterday, and called for a swing buy.
- EWO is bearish, but histogramm is turning higher. There is also a positive divergence in this oscillator.
The possible weekly pattern: I want to call your attention already now (as I did in case of EURNOK, or in case of WTI months before others realised), that ZN may be building a major Head and Shoulders top pattern. It can take an additional 2-3 months to complete this pattern, which in that case would be extremely bearish for 2017-2018!
Obviously for now it is just an idea, market will not necessarely work this way exactly. We can not exclude an immediate bearish break (within few weeks) but looking at today's Chinese data and increasing risk off sentiment this I think is less likely for now. We can not say 'NO' to a further bullish continuation either, if price breaks back above 132. It will be interesting to follow this pattern for next months.
For now I expect a spike higher, then we'll see the price action around daily and weekly key support/resistance levels. I am half trade unit long.
Weekly:
- Ichimoku is back to neutral: Price down to Kumo and 100wma support. Price is well below 9 (Tenkan) and 26 (Kijun) weeks averages, Tenkan/Kijun cross is weak bearish.
- Heikin-Ashisignal has been swing bearish for last two weeks, but orice reached a strong weekly key support around 129'24
- EWO down to neutral
- MACD signal together with Price/Kijun relation tells the same story: bull market is probably over, but it is not yet bearish! We will probably see a few more weeks of sideaway price action before: either a bullish trend resumption or a strategic bearish reversal.
Daily:
- Ichimoku setup is bearish. Bearish supports are at: 130'20 and stronger zone between 131'06-131'20 (this is also weekly Kijun Sen)
- Hekin-Ashi signals start of a pull back. If you followed my on Twitter, there I already showed you the 4H positive divergences yesterday, and called for a swing buy.
- EWO is bearish, but histogramm is turning higher. There is also a positive divergence in this oscillator.
The possible weekly pattern: I want to call your attention already now (as I did in case of EURNOK, or in case of WTI months before others realised), that ZN may be building a major Head and Shoulders top pattern. It can take an additional 2-3 months to complete this pattern, which in that case would be extremely bearish for 2017-2018!
Obviously for now it is just an idea, market will not necessarely work this way exactly. We can not exclude an immediate bearish break (within few weeks) but looking at today's Chinese data and increasing risk off sentiment this I think is less likely for now. We can not say 'NO' to a further bullish continuation either, if price breaks back above 132. It will be interesting to follow this pattern for next months.
For now I expect a spike higher, then we'll see the price action around daily and weekly key support/resistance levels. I am half trade unit long.
