30-Yr U.S. Treasury Bonds (US) Futures Technical Analysis – October 22, 2014 Forecast

December 30-Year U.S. Treasury Bonds traded sideways-to-lower on Tuesday, setting up the market for the return of volatility.

The main range is 135’13 to 148’00. The first downside target is the 50% level at 141’23. The next targets are two uptrending angles at 141’19 and 141’05. The last key downside target is a Fibonacci level at 140’07.

On the upside, the first resistance is a steep uptrending angle at 144’27. This angle was formerly the support line of an up channel which gave the market direction for nine days. Overcoming this level will put the market in a strong positon once again. This is unlikely, however, unless the stock market resumes its self-off.

The volatility today could come following the release of the U.S. consumer inflation report. Month-to-Month inflation is expected to be flat. Core CPI is expected to show a 0.2% gain.

The longer the T-Bonds remain in a tight range, the greater the move once traders decide on a direction.