30-Yr U.S. Treasury Bonds (US) Futures Technical Analysis – October 21, 2014 Forecast

December 30-Year U.S. Treasury Bonds finished slightly higher on Monday, but posted an inside move. This typically indicates impending volatility. Traders are waiting for direction from the stock market and U.S. economic reports.

The price action the past two days indicates that the market has taken back all of the gains following last week’s spike up to 148’00.

Monday’s weak close also puts T-Bonds on the bearish side of an uptrending channel for the second consecutive day. This indicates many of the speculative buyers are out, or that short sellers have increased selling pressure.

The main range is 135’13 to 148’00. Its 50% level at 141’23 is the first downside target.

If the selling pressure continues through this level then look for an eventual break into a pair of uptrending angles at 141’11 and 140’29.

The final downside target is the Fibonacci level at 140’07.

The inside move means traders should watch for volatility today. This means there are two impact points to watch. Look for a bullish tone on a strong move over 144’11 and a bearish tone under 142’09.