Technical Analysis

Is It Time To Buy Bonds? (ZB) T-Bond Futures

  • ZB has moved lower, as expected, since our last analysis into a support zone.
  • Price bounced out of the support zone, with volume indicating high demand.


The last time we looked at T-bond futures was at the beginning of August when we expected price to move lower into a support zone. This happened last week as ZB touched last year’s lows. Let’s see where we expect price to go from here after the support zone successfully held.

Technical analysis

As price moved into the support zone, we saw a significant increase in volume, almost 3 quarters increase compared to the average. This tells us that this level is being respected by the market, and traders have been waiting to see how price reacted to this level closely. The zone is at 118, while the resistance zone above it is at 125. We could see the market bounce between these levels for a few weeks or months, and from here, it is not necessary to analyze where we think it could break out from. We can simply take positions within these ranges until it does eventually break out. Taking longs in the 118 support zone as bullish candlestick formations occur is likely a good strategy to follow moving forward.