June U.S. Treasury bond futures (ZBM25) present a buying opportunity on more price strength.
You can see on the daily bar chart for June T-bond futures that prices are in an uptrend and that the bulls have gained some fresh upside momentum with this week’s price gains. This week’s FOMC meeting produced no hawkish surprises from the Federal Reserve, which also assuaged the bond market bulls. Recent weaker U.S. economic data also augurs for lower U.S. interest rates in the coming months.
A move in June T-Bond prices above chart resistance at this week’s high of $118 23/32 would become a buying opportunity. The upside price objective would be $123 even, or above. Technical support, for which to place a protective sell stop just below, is located at $117 even.
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.
