T-Bonds Are Waaaay Overbought, and Primed For A Reversal! (ZB)

Hi friends! Welcome to this analysis on the T-Bond futures contracts! Let's get right to it! Looking at the weekly T-Bonds, we can see that price has been exploding to the upside. However, T-Bonds are waaaaaay overbought right now. In fact, we are in record high RSI territory on the weekly chart. So, what does that tell us? Well, if we look at the last few times that the RSI had readings this high on the T-Bond market, we can see that powerful selloffs followed nearly every time without fail. So, based on that, and the fact that we're well above the top of the Bollinger band, I think there is high likelihood that T-Bonds are about to reverse course. Currently, there is no evidence in the price action, to support the argument of a powerful reversal. However, the RSI is tremendously overbought, and the historical response to these overbought weekly RSI levels has been a massive selloff. For now, let's keep an eye out for a reversal candle to close here on the weekly. If we see an inverted hammer, a bearish doji, or just a bearish engulfing candle, we can assume that the top is likely in for this move.

We all know that the Fed has cut rates, and prices are rising as a result. However, I

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***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***

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