Moment of Truth for the Ten-Year T-Note

ZN has been Working on a Bottom Since December 1 - Here's Where We Find Out Whether It's an Inverse H&S or Megaphone Bottom

ZN has been Working on a Bottom Since December 1 – Here’s Where We Find Out Whether It’s an Inverse H&S or Megaphone Bottom

The 10-year t-note has been working on a megaphone right shoulder for a potential inverse head and shoulders that began forming December 1. Now it is back at the inverse H&S neckline.

A quick pullback here to the right shoulder VWAP (volume-weighted average price) at roughly 124-23 would set up a breakout from the inverse H&S with a target of roughly 129 (green scenario).

A break through the neckline without a pullback first (purple scenario) would usually stall out quickly and the 10-year would form a topping formation at the neckline.  That would typically lead to a plunge to the right shoulder megaphone bottom for a retest of the low and possibly a new low.

That would be a plunge to buy, because the t-note would just have reached the low point of a larger megaphone bottom en route to a higher target.

10 Comments (To enlarge images, right click on image & then click "view image") → Moment of Truth for the Ten-Year T-Note

    1. ewtnewbie

      Rising MP on the 5-min chart from just before the open trying to go get that PT and a retrace target of 2292.50 once it completes. Still rising though, so don’t get silly!

      I think the bears have left the building…not much conviction to playing the downside. Where’s SAM when you need him for sentiment?!? GLTA.

      Reply

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