U.S. T-Bonds Up Against Stiff Overhead Resistance

December Treasury Bond futures at the Chicago Board of Trade on Monday morning poked to a fresh two-week high of 113 6/32. Prices then backed off the session high and were trading near the session low on some profit-taking pressure from recent gains. Bond market bulls still have the near-term technical advantage, as prices are in a 4.5-month-old uptrend from the late-June low of 105 18/32, basis December futures.

click on the chart to enlarge
T-Bond Futures
Last week’s upside price action did produce a bullish weekly high close, and also averted the potential for a double-top reversal pattern forming on the daily bar chart. There is some strong overhead chart resistance located at the September high of 113 11/32 in December T-Bonds. If the bulls can push and close prices above this level, then they would gain solid upside technical strength to suggest another leg up in prices in the near term, including a test of strong technical resistance at the 115 even area.
On the downside, near-term technical support is seen at 112 16/32 and then at 112 even. A close in December T-Bonds below last week’s low of 111 13/32 would provide the bears with some fresh near-term downside technical momentum to suggest a retest of the late-October low of 109 27/32.
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