We took a look at the US 10 Y yield a couple of days ago, so why not take a look at the +20 Y this time.
Since I last looked at this Fund we have seen some very interesting Developments. First of all we broke below the Shoulder/Head/Shoulder tops neckline calling for a decline towards 95. We also have broken below the mid-line of a rising channel, which has been in place since 2003. As we can see most of the up move since 2003 has been going on in the lower part of the channel and after a relatively brief break towards the upper part of the channel we are now back into the lower part, this time with the risk of a major long term top being in place, which could mean a break below the channel support line. I'm sure it will not break at it first attempt, but I'm not sure I will be betting on it to hold firm on the next try. However, for now it doesn't matter if this support-line is going to hold or not. For now we should just concentrate on getting down to 95.
No comments:
Post a Comment