30-Yr U.S. Treasury Bonds (US) Futures Technical Analysis – October 20, 2014 Forecast

December 30-Year U.S. Treasury Bonds closed lower on Friday and in a position to weaken further since Friday’s close was below the support line of the uptrending channel that had been guiding the market higher for several weeks.

The nearest resistance angle today is at 143’27. This is the lower end of the up channel so overcoming this angle will put the market inside the channel once again and suggest higher markets to follow.

The main range is 135’13 to 148’00. The retracement zone formed by this range is 141’23 to 140’07. This is the next likely downside target. Since the main trend is up, watch for a technical bounce on a test of this zone.

A pair of uptrending angles from previous main bottoms pass through the retracement zone at 141’03 and 140’21, making them valid downside targets also.

Look for a bullish tone if buyers can overtake the uptrending angle at 143’27, otherwise watch for a drive into the 50% level at 141’23, but be prepared for a technical bounce off of this level.

The market could move in either direction today depending on the direction and volatility in the stock market. A hard sell-off in the equity markets will be bullish for T-Bonds while a sustained rally by the equity indices will be bearish for T-Bonds.