Are We at an Important Pivot Low Here in Interest Rates?

Further to my post of earlier today about soybeans, it looks like bonds are at a possible pivot point here now …

30-Year Treasury Bond Yields – Daily Chart #1

The upward broadening price pattern for bond yields has provided good signals at the last resistance pivot and the last support pivot … are we at another possible support zone once again here?  If we are, it would give us a higher low and probably be a great level to get long rates (short bonds) for the next little while.

30-Year Treasury Bond Yields – Daily Chart #2

The second chart above gives traders a closer look at what could be an important higher low …

30-Year Treasury Bond Yields – 195 Minute Chart

Yields have moved off of the 3-wave high back at the end of October and moved lower into the SLOT support zone … we can see dark blue, extreme warning candles with pink divergence dots here at the 61.8% support level.

20-Year+ Treasury Bond ETF (TLT) – Daily Chart

If yields have hit support, then bond prices will be at resistance highs.  Note that Oct 25th blog post looking for a tradeable low for bonds (click here).

20-Year+ Treasury Bond ETF (TLT) – 65 Minute Chart

If bonds are going to trade lower, then the first real signal to look for a positional/swing trade position will be the break of the 65-min ATR support level at $126.01.  Note that after I called for a pivot low on October 25th, the first signal for traders looking to trade long was the ATR break on October 30th.

Bottom Line – Its hard to think that bonds won’t get a strong bid if one of the multiple geopolitical threats rears its ugly head.  Notwithstanding that possibility, it looks like we could be at an important pivot low here for bonds.

Cheers … Leaf_West

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