Friday, February 19, 2016

Bonds in trouble, after creating this bearish pattern?

by Chris Kimble
30 year yield inverted top in bond prices jan 17
The above chart looks at the yield on the 30-year bond, from an “inverted” angle. Why invert the bond chart? This way it looks like bond “price.”
The 30-year yield (inverted) has peaked along line (A) a couple of times over the past 8-years. Last week a large reversal pattern (bearish wick) took place a dual resistance price point (1),, as it was attempting to break above resistance line (A).
Now yields are facing a test of steep rising support line at (2).
Should support break at (2), bond prices could dip for a while, giving back some gains they have achieved of late!

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