Bond futures contract June 23, 2006 30 min. chart analysis.
Intermediate term Bias: Short from 106 22/32 and 106 25/32, stop +10 ticks, target 105 8/32. Short term Bias: Short from 106 16/32, stop + 3 ticks, target 105 22/32
Why & How: Bonds trading below June 16 Price Map's Red Value zone - the best estimated value market accepted from June 16. This is a bearish biased market breath.
Two Price Maps analyzed: Price Map from June 16 and June 21
Aggressive short entries can be attempted against short term resistances, the peaks of Red Value zones (shown on chart bellow) at 106 16/32. The stops shall be no greater +3 ticks.
If 106 16/32 fails as resistance, it opens door to likely test of the "Hole" (rejected Value zone by market players, Price Map from June 16), 106 22/32. Above and very near, there is bottom range of Red Value zone at 106 25/32. This level is a technical resistance for time being.
Longer term swing entry bear low risk short entry approach against current bottom of best estimated market value price (Red Value zone) at 106 222/32 and 106 25/32. We use +10 ticks stop.
The target is calculated by selecting control points of Price Map/Price recent highs. The very likely 105 8/32 was shown as a target.
