30-Yr U.S. Treasury Bonds (US) Futures Technical Analysis – August 17, 2015 Forecast

September 30-Year U.S. Treasury Bonds are called slightly better shortly before the regular session opening.

The main trend is up according to the daily swing chart. The price action suggests that a new secondary higher bottom may be forming at 157’12.

Shortly before the cash market opening, T-Bonds are straddling a major Fibonacci level at 158’13. A sustained move over this level targets a short-term 50% level at 159’01 and a steep downtrending angle at 159’06.

The next targets over 159’06 come in at 159’13 and 159’30. This is followed by another pair of angles at 160’10 and 160’16. The latter is the last angle before the main top at 160’22. A trade through this level will signal a resumption of the uptrend.

The layout of the angles on the upside suggests that any rally is likely to be labored until 160’22 is taken out. Expect a rally to be a grind.

The daily chart indicates there is plenty of room to the downside on a sustained move under 158’13. The first target is Friday’s low at 157’12. This is followed by a short-term pivot at 157’02. The best target is a support cluster at 156’13 to 156’10.

Watch the price action and read the order flow at 158’13. This should tell us whether the bulls or the bears are in control.