TNote future: Rallies cannot be ruled out - Natixis

Rallies cannot be ruled out for TNote future as the daily stochastic is close to the oversold territory, explains Micaella Feldstein, Research Analyst at Natixis.

Key Quotes

“Yet, only a return above the resistances at 125 28-125 30 (9-day moving average) would lessen the risks of a dip back to a major supports at 125 01-125 03 (weekly Bollinger lower band).” 

“Such a rally sounds us tricky and we expect further downside potential for the contract. Note that a break below 125 01-125 03 would unleash strong downside potential, paving the way to 124 23-124 25 (FIbonacci extensions) and to 124 13 (rising trendline).  The resistances are at 125 16-125 18, at 125 28-125 30, at 126 07-126 09 and at 126 16.”