May 27, 2025
Commodity Futures Weekly Newsletter- For the week of May 26th, 2025
Bonds continue to trade below trendline support with bearish momentum still in play.
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A publication by the Research Team at Capital Trading Group: 800-238-2610
Financials
10 Year Treasury Bonds
10 Year Bonds trade below Trendline Support.
10 Year Treasury Bond Futures remains below previous Trendline Support. With RSI below 50, at 44.55, bearish momentum is still in play. A test of Structural Support at 109’08 is favored.
Trendline Support now Resistance
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. Only a break of 107’06 would negate this scenario. 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. The break of Trendline Support favors 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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