December U.S. Treasury bond futures (ZBZ25) present a buying opportunity on more price strength.

See on the daily bar chart for December T-Bond futures that prices are trending higher and the bulls have the overall near-term technical advantage. Prices last week hit a three-month high.

Fundamentally, a surprisingly weak U.S. jobs report for July has the majority of the marketplace presently factoring in two Federal Reserve interest rate cuts this year, including one coming in September. That’s bond-market bullish.

A move in December T-Bond futures above chart resistance at the August high of 115 27/32 would give the bulls more power and it would also become a buying opportunity. The upside price objective would be 120 even, or above. Technical support, for which to place a protective sell stop just below, is located at 114 even.

IMPORTANT NOTE: I am not a futures broker and do not manage any trading accounts other than my own personal account. It is my goal to point out to you potential trading opportunities. However, it is up to you to: (1) decide when and if you want to initiate any trades and (2) determine the size of any trades you may initiate. Any trades I discuss are hypothetical in nature.

Here is what the Commodity Futures Trading Commission (CFTC) has said about futures trading (and I agree 100%): 

Trading commodity futures and options is not for everyone. IT IS A VOLATILE, COMPLEX AND RISKY BUSINESS. Before you invest any money in futures or options contracts, you should consider your financial experience, goals and financial resources, and know how much you can afford to lose above and beyond your initial payment to a broker. You should understand commodity futures and options contracts and your obligations in entering into those contracts. You should understand your exposure to risk and other aspects of trading by thoroughly reviewing the risk disclosure documents your broker is required to give you.