02 September 2009

US10YY : Abandon Weekly Triangle

  • Last 3.36%
  • Below weekly triangle line (triangle = continuation pattern = uptrend in yield)
  • Sitting right on more important uptrend line now. Break thru = change in outlook = lower yields
  • If weekly sees follow thru, this would put it in sync with the monthly chart message = long selling tails (yield terms) above 3.50% not sustainable (4 previous candles exhibiting such behaviour so far) = tendency for lower yields

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