30-Year U.S. Treasury Bonds (US) Futures Technical Analysis – May 13, 2014 Forecast

 June 30-Year U.S. Treasury Bonds are trading flat in the pre-market session. The main trend is up on the daily chart. The main range is 133’25 to 136’22. The retracement zone of this range is 135’06 to 134’29. Since the main trend is up, traders shouldn’t be surprised that buyers showed up to defend the trend on Monday when the market traded 135’05 and overnight when 135’08 was tested.

Besides the 50% level at 135’06, additional support may be provided by a pair of uptrending angles at 135’01 and 134’29. The latter angle forms a support cluster with the Fibonacci level at the same price. These angles must hold or T-Bonds will weaken further. The trend won’t change to down on the daily chart until 133’25 is violated, but a sustained move under the pair of uptrending angles will in effect signal a change in trend.

During the overnight session, T-Bonds crossed to the strong side of a steep downtrending angle from the 136’22 top. This angle, moving down at a pace of 1 point per day, drops in at 135’06 today. This price is the same as the 50% level so it may become key support today.

A sustained move over 135’06 could trigger a rally into the next downtrending angle at 135’30, followed by 136’10.

An early upside bias could develop today if 135’06 holds as support. This will mean that buyers are defending the 50% level. If it fails, there shouldn’t be a panic since additional support comes in all the way down to 134’29. A trade under this price, however, could do some serious damage to the bullish structure.