Technical Update - US 10-year Yields find support ticking higher
Kim Cramer Larsson
Technical Analyst, Saxo Bank
The US 10-year Treasury Note future
The breakout following the inverted Shoulder-Head-Shoulder like pattern didn’t have much power to run forming a Doji Evening like top and reversal pattern resulting in a Pull back to test the Neckline from the upper side.
If the future closes below the neckline the S-H-S has been busted and bear trend is likely to resume. The bearish picture is confirmed if the Future closes below 118 16/32.
RSI was rejected at the 60 threshold supporting the bearish scenario is likely to unfold.
Obviously the identical (opposite) picture in US 10-year yields. Yields do not seem to be able to close below support at around 2.71. If yields close the day above the Neckline followed by taking out the right Shoulder at 3.03 the S-H-S scenario is demolished, and a test of May peaks will be in the cards.
For Yields to resume short term bearish trend 2.70 needs to be taken out
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