US 10 YR T-NOTES

Here is a chart of US 10 Year Treasury Notes. The chart is plotted on a weekly scale and analyzes the past decade. Long term trend lines worked perfect. In the second half of 2007 T-Notes broke out of a four-year long downtrend at 108 level and rallied towards 120 and then towards 130 level. Since the beginning of 2009, 10 YR T-NOTES price has been consolidating in a long-term range. We are now close to the upper boundary of this range which is at 126 level. This is a strong resistance and should stop the treasury rally for some time. We will keep a close eye on this long-term pattern and watch for a possible breakout. What we need to know for now is: “strong resistance is ahead…”