December U.S. Treasury note (ZNZ25) futures present a selling opportunity on more price weakness.
See on the daily bar chart for December U.S. T-Note futures that prices are now trending lower and have hit a three-week low. See, too, at the bottom of the chart that the moving average convergence divergence (MACD) indicator has recently produced a bearish line crossover signal, as the red MACD line has crossed below the blue trigger line. Both lines are also trending lower.
Fundamentally, recent upbeat U.S. economic data is changing the marketplace thinking on Federal Reserve policy — to one that may not see two more interest rate cuts this year. Recent U.S. data also shows inflation remains sticky. These elements are bearish for U.S. Treasury futures prices (rising yields).
A move in December T-Note futures below solid chart support at this week’s low of 112.06.0 would give the bears more power and it would also become a selling opportunity. The downside price objective would be 110.00.0 or below. Technical resistance, for which to place a protective buy stop just above, is located at 113.00.0.
IMPORTANT NOTE: I am not a futures broker and do not manage any trading accounts other than my own personal account. It is my goal to point out to you potential trading opportunities. However, it is up to you to: (1) decide when and if you want to initiate any trades and (2) determine the size of any trades you may initiate. Any trades I discuss are hypothetical in nature.
Here is what the Commodity Futures Trading Commission (CFTC) has said about futures trading (and I agree 100%):
Trading commodity futures and options is not for everyone. IT IS A VOLATILE, COMPLEX AND RISKY BUSINESS. Before you invest any money in futures or options contracts, you should consider your financial experience, goals and financial resources, and know how much you can afford to lose above and beyond your initial payment to a broker. You should understand commodity futures and options contracts and your obligations in entering into those contracts. You should understand your exposure to risk and other aspects of trading by thoroughly reviewing the risk disclosure documents your broker is required to give you.
