ZN1!
The Bond Selloff ResumesAs anticipated the bond rout continues. We saw a brief relief rally after the FOMC, as the hikes were largely priced in. However, 119'01 provided prohibitive resistance, and ZN immediately rejected it. We found brief support at 118'04, but have broken through this level, and are currently clinging onto 118'00 by a thread. The next target is the level below at 117'19. The Kovach OBV is extremely oversold, so watch for a relief rally, which could test 119'01 again.
ZN Trading Signals Daily Analysisafter a chart study, the price of ZN will continue its downward trend as long as there is still no signal of the end of this trend, however in my opinion this trend will not continue its decline long enough for the market to make a change of trend, because as we see the graph will soon touch a resistance that we traced (the green resistance) that it is a little difficult to break it, but suppose this break is made, it means the continuity of the downtrend, by tale if the market makes a change of trend direction before it breaks the green resistance, it means a start of an uptrend.
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The Bond Rout ContinuesBonds have leveled out after a brief relief rally tested 120'14. We saw prohibitive resistance confirmed by two red triangles on the KRI, then immediately fell back down to 119'01, where we are seeing support. The Kovach OBV picked up slightly with the rally, but fell back down to bearish territory with the rejection. If current levels don't hold, we are sure to bottom out again at 118'04.
Bonds Continue the Bear RoutBonds have taken another turn south, after flirting briefly with 119'23. With the Fed maintaining their hawkish stance, there is little to support a breakout, or a significant technical retracement. We have broken through lows at 119'01, and are currently hovering over our next target at 188'04. The Kovach OBV has been abysmally bearish for some time now, but does seem to be gradually leveling off, perhaps indicating a bottom soon. If we see a relief rally, then 119'23 should provide resistance.
The Bond Rout ContinuesAs anticipated, bonds faced steep resitance from 121'00 and sharply retraced. We have fallen back to 119'23, one level above lows at 119'01. The Kovach OBV ticked up slightly with the rally, but has fallen sharply at the moment. At this point it is clear that any rally is purely technical and the bear rout is still at play.
T-BOND QUICK ANALYSIST BONDS Understandable monthly analysis for everyone , after /21\ years of uptrend now we have a decisive moment nobody can predict what's going to happen next.
as a professional trader, I see we have 3 probabilities either the market will break out, or the market will return uptrend, and either will be a trading range.
33,3% breakout.
33,3% return up.
33,3% trading range.
only GOD knows what is next
Bonds Sell Off on Hawkish Fed MinutesBonds are back to hugging lows, after a brief attempt at higher levels. We found immediate resistance one level above at 121'00. Even the rally to that level encountered serious resistance at every step, confirmed by red triangles on the KRI. We are back to lows again at 120'14. The Kovach OBV is very bearish so we can expect an imminent breakdown to lower levels. Our next target is 119'23, which is significant as we will have given up the 120's all together.
Will the Bond Market Continue to Sell Off??Bonds have reached a relative high at 123'01 to the tick then promptly rejected this level. A red triangle on the KRI confirmed resistance and we headed straight back down to through the 122 handle to finally find support at 121'28. We are currently seeing some support here, confirmed by a green triangle on the KRI. However the Kovach OBV has taken a steep dive south suggesting the bear rout is about to pick up again. If so, the next target is 121'00, then 120'14. If we are wrong, we must break through 123'01 before we can consider higher levels.
Unchartered Territory-TNXAnyone who thinks they know for sure what's going to happen in this market should follow price action very, very closely. TNX just closed the month of March by very bullishly crossing the monthly cloud. Since the 1980's interest rates have been in a down trend. TNX could have crossed the monthly cloud bullishly on a couple of occasions but it never had the power to do what it did this month. What happens now?
Here are the times TNX could have had the strength to cross the monthly cloud bullishly but it got rejected:
Here is this months action:
Looking at it from a different angle...below is the monthly chart of ZN. When interest rates rise, ZN futures goes down. Does a 6% Interest Rate sound crazy? Don't break that neckline!
$TLT, Bonds long ideaAfter the whole round trip that started when covid hit, I think we are getting closer to a big, long position in bonds. The price range on the chart is where I will start buying and expecting to see seller exhaustion and trouble pushing it down further. Sentiment is really weak and you have people late to party trying to short right now to pick pennies in front of a steamroller. As an ideal target for $TLT we are talking $150 at least, so, due to the magnitude of the move, we are talking about a long term position or around 6 months out. Obviously seeing the volatility in this period and the little liquidity in markets I could be wrong, meaning the move much quicker. GL
Bonds Bear Rout Bottoming Out??Bonds have stabilized for now after a brief relief rally. We tested higher levels at 123'15 or so, after falling 7 handles from the 129's to the 122's in less than one month. The rally was short lived, and just a technical respite into the overall bear trend, exactly as we had predicted here. The price promptly rejected this level, as anticipated, and headed back down to lows. We found support just above the low at 122'10 and have been equilibrating thereabouts, between this level and 123'01. There is nothing to suggest any deviation from the bear rout, overall except perhaps for small relief rallies. If the bear momentum picks up again our next target is 121'28.
Every Day a New Low for Bonds!!Bonds keep falling as yields are rising globally. It seems that we have to redo our levels to predict yet another new low in ZN. The Kovach OBV is solidly bearish and we have fallen 7 handles, from the 129's to 122's in the month of March. We are currently testing support at 122'10, but the bear rout shows no sign of stopping. It would be unwise to try to catch a knife here, although the probability of a relief rally increases with each rung down. Our next taget is 121'28. A relief rally could test 123'01 or 123'15.
Treasuries Get Smashed as Investors Brace for HikesBonds continue their selloff ahead of the FOMC meeting today . The Fed is expected to raise rates, and we could be in for as many as 6 rate hikes total this year. This is impacting yields sending bond prices tumbling. ZN has made a brief attempt at higher levels but got batted down around 125'07, a level we identified yesterday. It is likely to continue the bear trend, currently finding support at 124'19 by a thread. The next target below is 124'06.
Bond Yields at Highest Levels Since 2019Bonds have edged out new lows as investors weigh deescalation of the war in Ukraine and increased expectations for a Fed rate hike . Yields in ZN, the 10 year treasury note, are the highest they've been since July 2019. We have sliced through multiple technical levels below, and have established new lows, yet again. We do appear to be seeing a brief pivot from lows at 124'19, but 125'07 is providing resistance confirmed by a red triangle on the KRI. If we are able to continue the rally and break through resistance, then 125'17 and 126'00 are the next targets above. If we continue to sell off, then 124'06 is the next target below.