TNX 10-Year Yield H&S Falling Wedge Oversold Positive Divergence

TNX 10-year yield has dropped the last couple months (note prices higher). Note the red line negative divergence spank down that was forecasted as it occurred in February. The H&S shown by the blue lines targets 2.7%, perhaps as the beach season is in full swing. Returning to this direct near term, price is falling into a wedge the last few days, while the indicators are setting up with positive divergence, so yield will pick a level in here to bounce up off of, 2.9% is sturdy support, so between this 2.90 and 2.99% level, yields should receive the positive divergence bounce (prices down) and recover. The 200 MA is 3.09% and provides a resistance target above for any bounce that occurs in yield.

After that adjustment in the coming days, then yields should venture lower (prices up) again, until that H&S target is achieved at 2.70-2.75%. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your financial advisor before making any investment decision.

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