30-Yr U.S. Treasury Bonds (US) Futures Technical Analysis – October 23, 2014 Forecast

December 30-Year U.S. Treasury Bonds drifted lower on Wednesday, taking out the previous day’s low and making 148’00 a new main top.

The main range is 135’13 to 148’00. The retracement zone created by this range at 141’23 to 140’07 is the primary downside target. The weak close on Wednesday at 142’13 puts T-Bonds in a position to challenge the 50% level at 141’23 today.

A pair of uptrending angles from previous bottoms come in at 141’27 and 141’13. The first angle forms a support cluster with the 50% level at 141’27 to 141’23. Since the main trend is up, buyers may come in at this cluster. This could be profit-taking or new longs entering.

If 141’13 fails then look for increased selling momentum into the lower or Fibonacci level at 140’07.

The very steep downtrending angle the market has been walking down comes in at 142’00 today. Technically, T-Bonds closed on the strong side of this angle at 142’13 so there may not be much downside momentum on the opening. Crossing back under 142’00 will be a sign of weakness.

The tone of the market today is likely to be decided by trader reaction to the cluster of numbers at 142’00 to 141’23. Since three numbers converge in this area today, selling pressure could be labored. Once it clears up in a day or two, the direction of the market will be clearer.