T-Note future: Emergence of a downside bubble on the daily chart - Natixis

Micaella Feldstein, Research Analyst at Natixis, suggests that the increase in the daily volatility and the sell signals on the daily indicators suggest the emergence of a downside bubble on the daily chart of T-note futures.

Key Quotes

“Against this backdrop, caution will be in order as an extension of the downside sounds likely. We’ll keep a lookout at the 127 28-128 supports, as a break below these levels would mark a sharp deterioration in the medium-term technical configuration, pointing to a pronounced decline towards the 127 09 threshold (rising trendline) ahead of 126 07 (Fibonacci extension) and even 125 07 (monthly Bollinger lower band).

Resistance levels are located around 129 16, at 130, at 131, at 131.13 and at 131.24.”