TNote: Weak daily volatility is likely to limit any rebounds - Natixis

The weak daily volatility is likely to limit any rebounds in TNote, especially since the weekly stochastic remains downbeat, according to Micaella Feldstein, Research Analyst at Natixis.

Key quotes

“Under these conditions, a clean breakout above 127-127.02 (upper band of daily Bollinger) looks difficult. Watch out rather for a pullback towards the support around 126.11-126.13 (lower band of daily Bollinger). Keep an eye on these last levels, as a break below this support would open the way for a more pronounced correction towards 125.18-125.20 (weekly Bollinger moving average). Resistance levels are located around 127-127.02, at 127.07, around 127.14-127.16, at 128 and at 128.07.”

“127-127.02 resistance seems toppish. Watch out rather for pullbacks towards the support around 126.11-126.13.”