30-Yr U.S. Treasury Bonds (US) Futures Technical Analysis – August 27, 2015 Forecast

September 30-Year U.S. Treasury Bonds are trading slightly better shortly before the cash market opening. Yesterday, the main trend turned down on the daily chart so the market may be setting up for a near-term retracement which is likely to be the next selling opportunity.

The market is currently finding support at a pair of 50% levels at 156’10 and 155’19. Also providing support is a pair of uptrending angles at 156’13 and 155’29. They all form a pretty loose price cluster.

Look for choppy conditions if the market remains inside 155’19 and 156’13.

A sustained move over 156’13 will signal the presence of buyers. This could trigger an acceleration into 158’13 to 154’21.

Taking out 155’19 with conviction could trigger a steep break into the Fibonacci level at 153’17. The daily chart opens up further under this level with 152’09 the next likely target.

T-Bonds remain vulnerable to a huge break. In my opinion, T-Bonds are riskier than stocks. If stocks continue to strengthen then look for the liquidation in T-Bonds to continue with a huge break just around the corner.