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...
The yield factor of bonds affects the USD directly. Now you do not have to know all this! And so falling bond price because of low yield = falling USD, Rising Bond yield & price = Rising USD.
However, Because of trade war , investors are holding there investment into less risky assets, Currently Gold and Bitcoin and Bonds.
Expecting Bond to continue bullish
T-Bonds completing the 1st stage of the reversal, at resistance at the 152 level. If it breaks the 150 level comes into play. This trade is a Reversal Trade because it is against the fundamental backdrop and market momentum, and is a play on the market getting over extended on the long side.
The whole world was glued to twitter waiting for an update on the trade war from President Trump. However what they received was rather anticlimactic: a tweet about saying we don't need to rush a trade deal, which was later deleted. It is likely the markets will interpret this as a risk-off event, since they were really expecting more clarification.
Bonds have been gradually overbought owing to a slew of risk off factors including global economic fears, and the trade war. At this point, we may be due for a corrective phase by the end of the week. There is a representative from China flying in, so this may provide a much needed respite from the doom and gloom.
The Kovach Momentum Indicators suggest that...
From the Medium Term ZB View, My View is ZB just completed its Wave 1 Major Uptrend and now retrace for Wave 2.
The Impulse move of Major Wave 3 is forming. I also projected the minor move VWXYZ in Major Wave 3 for reference.
My charts is projected based on the FIBO level and all parameter are matching so far. This will be my guideline and...