Where are Bonds/Treasuries going? Let the charts answer this question!

Where are Bonds/Treasuries going?    Let the charts answer this question!    Bond/Treasury futures are going down and are in a bearish trend.    Future price are going down so the yield is going up.   How far will it go?    Let’s use technical analysis to see where the next key support/resistances are.

Below is the Monthly chart 30 Year Bonds provided by Tradestation.    Three major supports have been recognized by the IMTF™ (multiple time frame support/resistances) in the past.   They are 145 26/32, 143 29/32 and 139 11/32.   The 139 11/32 is the strongest of the two.    We are approaching the first support fast.

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Below is the Weekly chart of the 10 year Treasury Note provided by Tradestation.   It looks similar to the 30 year.  Since price is a little further away from the cloud.    The 10 year is a LITTLE stronger than the 30 year.   The key supports are 122’03.5 and 119’15.0.

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Here is the monthly chart of the 30 Year Treasury Note Futures vs 10 Year Treasury Note futures.   Notice, the chart has been bullish but now going through a major pull back to the cloud.

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Here is the monthly chart of the 10 Year Treasury Note Futures vs 5 Year Treasury Note futures.   Notice, 5 year is strong bearish right now but approaching the bottom of the cloud which is major support.  Once the support is reached, it will be interesting to see if it breaks it or bounces off it.

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Here is a monthly chart of the 5 year Treasure Note Futures vs 2 Year Treasure Note Futures.  The 2 Year is a lot stronger bearish vs the 5 year and the chart is retesting the low and trying to break down to the next support level.

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Lastly,here is a monthly chart of the 30 year Treasure Note Futures vs 2 Year Treasure Note Futures.  It is bullish and going through a weak major pull back to the next support shown on the chart.

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In summary, all the charts for the various products are bearish but they are quickly coming to major support.

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About the Author Manesh Patel