Thursday, December 1, 2011

TNX is ready to break out

With tomorrow being NFP day, I decided to discuss a 10-yr T-Note short trade.
I have been literally stalking TNX to the apex of its wedge. I think it is getting ready to break out to the upside, just like in 2010. My targets are 22.50 and 24.00

TNX is ready to break out
(click on chart to enlarge)

Update on Dec 2 @ 4:20 pm
Definitely no breakout. Price got to the upper trendline and reversed hard. Equities sold off and contributed to treasuries' strength. We will have to see what happens next week. Price is now resting on 50 dsma. If no hold here, next support comes in @ 19.96, which is an open gap from Nov 29. Patience will be the virtue here, wait for it to break out.

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