Cycle Trading: Gravitational Pull on Bonds
|Bonds formed a swing high on Monday. They delivered bearish follow through on Tuesday by closing below the daily cycle trend line to confirm the daily cycle decline.
Tuesday was day 13 for the daily bond cycle. That places bonds 5 days shy of its timing band for a daily cycle low. So while a peak on day 11 starts to shift the odds towards a right translated daily cycle formation, I believe that there something more sinister is afoot. I suspect that bonds are beginning to feel the gravitational pull of a larger degree correction.
The long term weekly charts shows a multi-year resistance zone at the 128-129 level. And this week bonds are being rejected by the multi-year resistance zone. So this is setting up to be a longer bearish move. Which I plan to cover in Wednesday's Mid-Week Update
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.