Minor pull back likely in T-note futures – Natixis

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.

Key points

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.