June U.S. Treasury note (ZNM26) futures present a selling opportunity on more price weakness.
See on the daily bar chart for June U.S. T-Note futures that prices are trending lower and this week hit a contract low. See, too, at the bottom of the chart that the moving average convergence divergence (MACD) indicator is in a bearish posture as the blue MACD line is below the red trigger line and both lines are trending down. The T-Note bears have the firm near-term technical advantage.
Fundamentally, the Middle East war has stoked global inflation concerns. A Federal Reserve official on Tuesday said he favors keeping U.S. interest rates steady, due to inflation concerns. A U.S. Treasury auction of 2-year notes on Tuesday was poorly received, suggesting rising bond yields. All of the above are bearish for U.S. Treasury prices.
A move in June T-Note futures below chart support at 110.16.0 would become a selling opportunity. The downside price objective would be 108.10.0, or below. Technical resistance, for which to place a protective buy stop just above, is lcoated at 111.16.0.
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%):Â
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.Â
On the date of publication, Jim Wyckoff did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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