Interest Rates; 20-Year Breakout Test In Play

CLICK ON CHART TO ENLARGE

The chart above looks at the yield on the 10-year note (TNX) over the past 25-years. The long-term trend is down as an important trend test is in play currently.

The 10-year yield has spent the majority of the past 20-years inside of falling channel (1). They have also spent the majority of the past 6-year inside of sideways trading channel (2), as rates are currently at the same level they hit in 2013.

Yields are now testing the top of the 25-year and 6-year channels at the same time at (3), with momentum now at levels last seen nearly 20-years ago.

One thing for sure is this….Bond bulls do not want to see dual resistance break at (3), as it would signal a major trend change in rates.

Will it be different this time for rates? Rates are testing one of the most important price points in a long, long time, so keep a close eye on what they do at (3)!!!

 

Zero Hedgers receive 15 months for the price of 12 with an annual subscription (type ZHDEAL in the subject and email us for instructions - services@kimblechartingsolutions.com)

 

Go here to learn how the Power of the Pattern improves decision-making and results

See a Free sample of our most popular research here  

Receive research to your inbox when it's posted on the  blog

Follow on Twitter 

LATEST WEBINAR

Email services@kimblechartingsolutions.com  

Call us Toll free 877-721-7217    International 714-941-9381 

Website: KIMBLECHARTINGSOLUTIONS.COM

 

 

 

 

 

 

Comments

Truth Eater Wed, 06/13/2018 - 12:47 Permalink

It didn't break out yet.  Wouldn't it be a surprise if they repeat 2010 with rates dropping until September and then ramped them up going into the midterm elections?  It would look like a slow drop in rates from 3% 10yrT to 2% by mid September....  and then coming back up to 3% by Dec 15, with higher targets forward.