TLT: Piercing Line on the Quarterly Chart Signaling Lower YieldsTLT (The 20-Year US Treasury Bond ETF) has recently completed the measured move of the Ascending Broadening Wedge Breakdown and has now confirmed a Piercing Line on the 3-Month Chart while closing above the 0.886 Retrace. We can also see that the RSI has begun to break out of its downtrend and these combinations of variables seem to point towards the TLT reversing the overall downtrend which could lead to a major move up towards the 50-61.8% retraces between $130 and $143 this would come with bond yields falling off significantly and may also be a sign of investors seeking safer investments over the coming months.
Bondyields
US10Y About to form a 1D Death Cross. How to trade it?The U.S. Government Bonds 10 YR Yield (US10Y) has gone a long way since our last 1D analysis 3 months ago (October 21 2023, see chart below), hitting all 3 Targets in the process:
This time however it is in a completely different situation as it may be rebounding since the Higher Low at the bottom of the long-term Channel Up on December 28, but is being rejected on the 1D MA50 (blue trend-line) since Friday. As a result by tomorrow it will complete a 1D Death Cross, which is technically a bearish pattern.
Last time it was formed however (May 04 2023), it did so exactly on a bottom and a very strong 6-month rally started. Also technically, every time it finished such a downtrend (blue ellipse), strong rallies above the 1D MA50 followed.
As a result our trading plan will be based on simple break-outs. As long as the price closes a 1D candle above the 1D MA50, and remains within the Channel Up, we will be bullish targeting the 5.000% Resistance. If however it breaks below Support 1, the loss will be minimal and we will reverse to a sell, targeting Support 2 at 3.300%.
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US10Y: Bullish long term.The US10Y is being rejected on the 1D MA200 after a HL rebound at the bottom of the 1 year Channel Up. The 1D technical outlook turned bearish again (RSI = 42.660, MACD = -0.055, ADX = 36.524), same with the 1W timeframe (RSI = 43.184), so this is still an early buy opportunity for the long term. The 1D RSI patterns among the three bottoms so far are similar and one more pullback to the HL would be ideal for the most comfortable buy entry until the 1D MA50 is crossed. Our target is towards the 0.786 Fibonacci level (TP = 4.600%).
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10 & 30 Year yields are at decent to strong support levelsThe 10 year & 30 Yr #yield are at support levels.
Looking at Daily charts:
The longer term, 30Yr, looks better than TVC:TNX (10Yr)
Looking at Weekly charts:
The 10Yr support level looks strongest @ 3.3%.
All sorts of support levels and trendlines were broken recently.
The 30 Yr trendline is certainly broken & Strong Support is found here.
US10Y ~ Bullish Downtrend Reversal (2H)TVC:US10Y chart mapping/analysis.
US10yr bond yields finding bullish reversal off lower range of descending parallel channel (white) - further momentum pending upcoming 10yr auction + US economic data.
Trading scenarios into EOY:
Bullish reaction to macro economic news = continued momentum to break above descending trend-line (white dashed) towards 38.2% resistance zone.
Bullish extension target(s) = re-test upper range of descending parallel channel (white).
Bearish reaction to macro economic news = reversal back below 50% Fib / 4.10% psychological support level / lower range of descending parallel channel (white) / ascending trend-line (green dotted) confluence zone.
Bearish extension target(s) = Golden Pocket zone / 4% psychological support level / 78.6% Fib.
US10Y vs. SPX ~ Inverse Correlation/Ratio Indicator (Dec 2023)TVC:US10Y versus SP:SPX inverse correlation analysis.
Work in progress indicator for anticipating market trend switches.
Notes:
Emerging correlation identified within US10Y/SPX ratio.
Spikes in ratio (orange vertical line, dotted) aka bond yield ROC/volatility = higher probability of risk-off sentiment (ie big tech & growth stock rotation).
Correlation only valid when market is "hyper-sensitive" to bond market fluctuations, especially during recent US Fed undertaking rate hike cycle.
Should be used in conjunction with other confluence factors to provide conviction in swing/position trades.
BOND YIELDS - Expect to See Minimum 20% Interest Rates...Have you ever encountered the notion that less can be more? Well, that's precisely why it has taken me considerable time to present this update concept regarding Bond Yields. This analysis carries profound implications for every global market. What we're witnessing here holds the potential to trigger the most significant economic downturn in our lifetime—the impending prospect of the Greatest Depression. The issue at hand is human complacency. In today's world, there's a pervasive disregard for the past, dismissing it as old news. However, nothing could be further from the truth. Our society seems destined to repeat the same errors due to our complacency, particularly in an era dominated by instant gratification. We persist in borrowing from the future at an unprecedented rate, marking the pinnacle of leverage and record debt compared to household income, which is at historically low levels. I take my time delivering this information to ensure the utmost quality in my analysis, even if it means minimizing my output. Stay tuned for more insights to come.
US10Y Is this the end of Bond Yields' 3.5 year run?The U.S. Government Bonds 10 YR Yield (US10Y) is pulling-back towards the 1W MA50 (blue trend-line) and bottom of the Rising Wedge. The pattern is getting too tight and the squeeze will inevitably result in a break-out and new trend/ pattern.
If the Rising Wedge breaks downwards, it will mean the end of the yield's +3.5 year bullish run and will have a high impact both on stocks and Gold. In fact there are high probabilities of that happening as a similar Rising Wedge broke to the downside at the end of 2018.
If that gets materialized, then the first attempt should be on the 3.300% Support 1 level, before the 1W MA200 (orange trend-line) gets closer for the test of its long-term Support status.
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US10Y: The goal from now on should be to buy the bounce.The US10Y is approaching an oversold technical state on the 1D timeframe (RSI = 34.650, MACD = -0.086, ADX = 44.537) as selling was accelerated this week after failing to get close to the 1D MA50. The long term pattern is a Channel Up and the decline since Octobet 23rd is the new bearish leg.
The one prior hit the 0.5 Fibonacci level of the rally and then rebounded to the 1D MA50 with the 1D RSI approximately on the same levels as today (S1 Zone). Consequently, our goal from now on is to start buying on dips and aim for the 1D MA50 and in particularly the 0.5 Fibonacci level from whatever bottom the US10Y makes now (modest estimate TP = 4.575%).
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TLT ~ Have US Yields finally topped? (Weekly / Nov 2023)NASDAQ:TLT chart mapping/analysis.
Note: TradingView chart dividend adjusted.
Price action bouncing off Golden Pocket (66% Fib) support
Heavy trading volume = institutional activity (ie positioning?)
Rejection wicks on previous weekly candles = selling pressure still present (correlation with long-end yields holding strength)
Looking for re-test of lows + bounce to confirm double bottom support base established for bullish momentum.
Inverse play = price action engulfs previous candle, completes gap partial-fill + taps overhead resistance aka descending trend-line (light blue dotted).
Institutional short-squeezes could still be active - complimenting inverse play thesis.
Failure to break above/below either trend-lines = price action continues to contract until eventually ripping in volatile fashion in either direction.
Set alerts - monitor US yields - wait for trade to set up in your favour.
US10Y ~ Intraday Analysis (2H Chart)TVC:US10Y intraday mapping/analysis.
US yields dip while bonds & stocks rip.
US10Y in clear downtrend with potential bearish H&S pattern developing, TBC.
H&S development would correlate with bonds/stocks pullback before further bullish momentum into EOY.
Left shoulder, head & neckline outlined. Right shoulder parameters:
Rally above ascending 1st trend-line (green dashed)
Resistance at 200SMA, gap fill, 2nd ascending trend-line (green dashed) + upper range of descending parallel channel (white)
Price action rolls over to re-test/break neckline & validate pattern
Prelim target = lower range of ascending parallel channel (light blue) + 50% Fib confluence zone.
Note: break of "neckline" before right should formation negates H&S = express trip to prelim target.
US10Y Extremely overbought on Bearish Divergence. Sell longterm?The U.S. Government Bonds 10YR Yield (US10Y) is having the first red month (1M) after rising non-stop since May. It has been on extremely overbought levels for the last 12 months as the price established itself above the multi-decade Bearish Megaphone pattern, the same way it was oversold below it following the March 2020 COVID crash. As you know the price quickly corrected back inside the Bearish Megaphone in a pure technical harmonization process of the extreme levels.
Technically it should follow a similar reversal now again, as the most important technical development of the year is October's Lower Highs formation on the 1M RSI. This is a huge Bearish Divergence as the price during the same period is trading on Higher Highs. The same kind of Bearish Divergence has only been spotted another two times in the last +40 years. On both occasions, an aggressive decline started. As a result it is only natural to expect a 1M MA50 (blue trend-line) test before 2024 is over, which right now is a huge early sell signal.
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US10Y ~ November TA Outlook (Weekly Chart)TVC:US10Y chart mapping/analysis.
US10Y getting dumped off combination FOMC decision, US economic data + US Treasuries update triggering institutional short covering.
Bond & equities market squeezed higher, in-line with seasonality.
Possible bearish H&S in development on lower timeframe, pending pattern confirmation.
US10Y: Channel Up intact but first time on a Bearish Divergence.US10Y continues to rise inside a long term Channel Up, with its 1D technical outlook bullish (RSI = 57.618, MACD = 29.942, MACD = 0.116). The 1D RSI though is for the first time in the recent months under a LH bearish divergence so for the first time the probabilities for a bearish reversal get stronger. Consequently, if the price crosses under the Channel's bottom, we will see and target the 1D MA50 (TP = 4.600). Until then, we will but on the first 1D candle that closes under the S1 level, aiming at a +10.70% rise (TP = 5.185).
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US10Y Bearish Divergence tells us it may be time for correctionLast time we looked at the U.S. Government Bonds 10YR Yield (US10Y), it gave us a technical bounce and profitable buy signal (see chart below) as the Higher Lows trend-line held:
This time we get an opposite signal as the 1D RSI formed Lower Highs, while the price is on Higher Highs, which is a technical Bearish Divergence. The asset is still supported both by the 1D MA50 (blue trend-line) and the Higher Lows 3 trend-line since the May 04 Low.
Our strategy is to sell and target a price slightly above each Higher Lows trend-line, then re-sell if a 1D candle closes below that Higher Lows trend-line. Target 1 is 4.745, if a 1D candle closes below Higher Lows 1, we will re-sell and target 4.645 (expected contact with the 1D MA50). If Higher Lows 2 break, then re-sell and target 4.465 on Higher Lows 3 and a projected contact with the 1D MA100 (green trend-line).
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buy in bull-trend1. Technical Analysis 📈 IN bull-trend
2. Entry and Exit Timing ⏱ Entry in 3.127$
3. Risk Management 🚧 3% capital
4. Trade (Buy/Sell) 📊 buy
5. Stop Loss 🛡 $2.53
6. Take Profit 🎯 $5.6
👨🎓 Experience and Education: Our trading team has five years of experience in financial markets, especially cryptocurrencies.
US10Y Bullish as long as the 1day MA50 holds.The 10year Bond Yields / US10Y is trading inside a Channel Up since May 1st.
The last two weeks the price is pulling back after a Higher High rejection and Double Top on Resistance A (4.888), aiming at the bottom of the Channel Up.
That is a buy opportunity to target 4.888 again.
If on the other hand the 1day MA50 breaks (is untouched since July 20th), sell and target 4.222 (Support A).
Keep an eye on the Rising Support of the 1day RSI also for early bearish signals.
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US10Y: Soaring Bond Yields as Federal Reserve Maintains Hawkish The Fed Hawkish Stance
During Wednesday's address, Federal Reserve Chair Jerome Powell reinforced his stance on tackling inflation with a more cautious approach. He emphasized that the central bank is not yet finished with its efforts to curb inflation and hinted at the possibility of implementing multiple interest rate increases during future monetary policy meetings.
Powell's statement comes as a response to the ongoing challenge of bringing down inflation, which has consistently remained above the central bank's target of 2%. Notably, some Fed officials have emphasized in recent speeches that inflationary pressures persist. They specifically highlight core inflation, which excludes the volatile prices of food and gas, as not decelerating as rapidly as overall inflation.
The aforementioned statement supports the potential scenario of higher Government Bond Yields in the future, as an increase in interest rates typically correlates with elevated yields.
Technical Analsyis
The U.S. government's 10-Year Bond Yield has undergone a retracement, precisely at the 0.5 Fibonacci ratio, establishing a support area. Notably, the yield currently exhibits a bullish trend as it remains above the EMA 200 line, indicating positive market sentiment. Furthermore, the Falling wedge pattern suggests a continuation of the prevailing trend. Complementing this observation, the stochastic line crosses within the neutral area, further bolstering the case for a possible upward movement toward the target area.
It is important to keep in mind that once the target/support area is reached, the roadmap provided may no longer be valid.
If you find this analysis helpful, I encourage you to show your support by clicking the rocket button and sharing your opinions in the comments section below.
"Disclaimer: This analysis is intended solely for educational purposes and should not be considered as a recommendation to take a long or short position on the TVC:US10Y ."
US10Y: Short term pullback ahead.The US10Y hit the top of the five month Channel Up, which started after a 5 time hold on the Support Zone, while the RSI shifted to LH (RSI = 68.642, MACD = 0.088, ADX = 56.354). Having completed a common +12% increase, we get the same sell signal as all prior Higher Lows. Our target is Fibonacci 0.5 (TP = 4.315%), highly likely on course for contact with the 1D MA50.
Prior idea:
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