December U.S. Treasury bond futures (ZBZ25) present a buying opportunity on more price strength.
See on the daily bar chart for December T-Bond futures that prices have rallied recently and are at a four-month high. Prices have also seen a bullish upside “breakout” from the recent choppy trading range. See, too, at the bottom of the chart that the moving average convergence divergence (MACD) indicator is in a bullish posture as the red MACD line has crossed above the blue trigger line and both lines are trending up.
Fundamentally, last Friday’s weaker-than-expected U.S. jobs report now has the marketplace pricing in at least 0.75% in interest rate cuts by the Federal Reserve by the end of the year. That’s bullish for U.S. Treasury prices.
A move in December T-Bonds above chart resistance at last week’s and today’s high of 116 21/32 would become a buying opportunity. The upside price objective would be 121 even, or above. Technical support, for which to place a protective sell stop just below, is located at 114 28/32.
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.
