Technical Analysis

Is The Bond Buying Bonanza Over?

  • ZB futures chart is moving into a consolidation phase
  • RSI has bounced out of an oversold zone.
  • Levels to watch for bulls and for bears.


The bond-buying has hit a roadblock for the moment as ZB shows signs of a reversal. On the ZB futures chart, we look at this inversely as bond buying means the chart goes down because yields get less. So for this article, when ‘bullish’ is made as a reference it indicates the chart is moving upward and vice versa just as normal.

Technical Analysis

The daily chart RSI was oversold at the beginning of October and has bounced since then with the price. ZB is currently testing the 50 moving average which is causing some additional selling price but time will tell if it will hold or if we see higher highs form from here. Support currently sits at 108’24 and a break below that sends price further down toward the pivot points support lines shown on the chart below. If bulls gain the upper hand then 114’46 is the next resistance level to watch.

Weekly Chart

A quick look at the weekly chart, there is a noticeable pattern of sell-off followed by a consolidation period. If the pattern repeats itself we could move into a consolidation phase where ZB price sits sideways for 4 – 6 months.

Range-bound strategies on longer time frames could prove profitable in the next few months.