Natixis technical analysis note sees scope for a minor pull back in the Treasury note futures in the next few days, but says the support at 124.02 (daily parabolic) is likely to hold.
ST to MT view - Given that the daily stochastic has turned bearish, we cannot rule out some pullback in the next few days to 124 16-124 18 (daily Bollinger moving average) and to a major support at 124 02 (daily parabolic). This last support is likely to hold, as daily volatility is weak, paving the way for new rebounds towards 125.13-125.15 (upper band of daily Bollinger).
There will need to be a clean breakout above these last levels to open the way for a lasting rebound towards 126 (weekly Bollinger moving average) before 126.14 (Fibonacci projection).
Supports are located around 124 16-124 18, at 124 09, at 124-124.02, at 123.22, at 123.07 and at 122.16.