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Treasury Bonds Appear Ready to Launch Rally

Discussion in 'Forex Daily News & Outlook' started by futuretrends24, Jun 2, 2010.

  1. futuretrends24

    futuretrends24 New Member

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    Today’s sample of Futures Analysis from FuturesHound.com

    After building a support base throughout the day while reacting to the sideways trade in the equity markets, September Treasury Bonds mounted a strong rally late in the session, indicating that they may be poised to launch the start of another leg higher.

    For the fourth consecutive day, T-Bonds held the June 27th bottom at 122’05, indicating that there was still buying interest in the contract. At the same time the market attempted to regain an uptrending Gann angle at 123’14. Although the market is currently on the bearside of this angle, it isn’t going to take much to turn the T-Bonds bullish again if this angle is recovered. The minimum upside objective is a minor retracement zone at 124’04 to 124’19. If support can be established in this zone, then look for a retest of the contract high at 126’05.

    The T-Bonds are dependent upon the stock market for direction at this time. If stocks get hit hard then the money flow out of stocks and into the safety of the Treasuries is likely to launch a strong rally. What could be slowing down the upside action in the Treasuries is renewed interest in the U.K. Gilts as a safe-haven alternative to weakness in the Euro. There was evidence on Tuesday that nervous money was leaving the Euro and flowing into the British Pound. Any new problems arising in the U.K. regarding its debt load is likely to drive additional funds into U.S. Treasuries. This developing bullish scenario is likely to hold as long as support at 122’05 remains intact.

    Read full article at full article at FuturesHound.com as well as Futures Analysis, Futures Education and exclusive timely market Gann Analysis

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