Fibonacci Confluence In US 10-Year Note Price

Let’s take a weekly look at the 10-Year Treasury Note Price and highlight an interesting Fibonacci Confluence Cluster price and note the recent action taking place.

US 10-Year Treasury Notes (Price):

(You’ll need to click on the image for large chart)

Price broke out of a lengthy downward sloping trendline (actually trend channel) in late 2007 and then broke out again in late 2008.  Price made a new high near $130 and has been in a retracement against the sharp run-up in prices at the end of last year.

Where might prices find possible support?

The first logical place would be the prior swing high at $122 (possible Elliott Wave 1) but price has already slightly breached that level, though it may yet prove to be support.

Another ‘hidden’ zone may come in at around $119, which represents a Fibonacci Confluence Cluster price off of two retracements to swing lows (look closely at the chart to find where the Fibonacci grids were drawn).

The Momentum Oscillator registered a major new momentum high in late 2008, hinting towards the possibility that higher prices are yet to come, perhaps in an Elliott 5th wave to challenge or exceed the $130 price high.

The moving averages are in the most bullish orientation possible and price is currently trading above all three, meaning we could also expect potential support on pullbacks to the rising 20 (or perhaps 50) weekly EMAs.

Continue to watch Bond and Note prices, and expect potential strength here should the US Stock Market falter to new lows.

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