May 19, 2025
Commodity Futures Weekly Newsletter- For the week of May 19th, 2025
10 Year Bonds break Trendline Support this week.
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A publication by the Research Team at Capital Trading Group: 800-238-2610
Financials
10 Year Treasury Bond Futures
10 Year Bonds break Trendline Support.
10 Year Treasury Bond Futures broke below the prevailing Trendline Support this week. With RSI below 50, at 42.40, bearish momentum is rising. After a ”retouch” of Trendline Support to close the week, a test of Structural Support at 109’08 is favored.
Trendline Support now broken
As before, the price action from the 107’06 early 2025 low would be the base for any new advance. As is, the action can continue to be construed as constructive, with 5 small non-overlapping waves to the recent 114’10 high. This would be Wave 1 of a new cycle. Clearly, any new high above 114’10 would favor this outcome. A break of Trendline Support would not negate this scenario. Only a break of 107’06 would. With the recovery in Stock Indices incomplete, the correction in Bonds may also be incomplete.
Conclusion
The main support level of 107’04 is pivotal as any breaks would be interpreted as bearish for Bond prices. Any breaks above 114’10 would be Bullish for Bond Prices. Until then, a decline below 109’08 at the April 2025 low may be needed. Use any breaks of Trendline Support to favor that outcome while lowered Resistance at 112’20’5 remains in place.
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Thank you!
Trading advice given in this communication, if any, is based on information taken from trades and statistical services and other sources that we believe are reliable. The author does not guarantee that such information is accurate or complete and it should not be
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