WEEKLY PICTURE :
Last week price action triggered an “Harami” pattern, which is likely to trigger further sideways price action over the coming days !
Indeed, usually such kind of pattern, following a long black candle is normally bullish if the last candle is very small in comparison with the previous one, which is not the case now as
the last weekly candle is pretty “big” which confirm some uncertainty about further development !
In addition, after having tested an intraweek low of 1.34% the week before, the 10 years recover again slightly above the top of the weekly clouds support which might be seen as a positive (yield) price action but…
it is still below the Tenkan-Sen or Conversion line, currently @ 1.52 % and upcoming price action this week and more important its closing level will give more clues for the future.
Globally, the ongoing (yield) bearish downtrend is still in place and only a clear upside breakout of this downtrend channel top, currently @ 1.69%-1.70% would force to a view reassessment of the expected ongoing downside pressure calling for lower yield towards the bottom of the clouds support zone around 1.15% – 1.10 % which also coincides with the ongoing former uptrend support line, currently around 1.12 % and which also was the former lows reached on July-August.
On a daily basis, watch the clouds resistance area and the Mid Bollinger band as a good barometer too a clear and sustainable breakout of those areas would be the first signal for further upside (yield).
Have nice trading week.
Ironman8848 & Jean-Pierre Burki
All views expressed on my analysis are my own and do not represent the opinions of any entity, whatsoever with which I have been, I am now or I will be affiliated with. Any action you take upon the information on those analysis is strictly at your own risk and should not be considered as an advisory. The author assumes no responsibility or liability for any errors or omissions in the content of his analysis. The information contained is provided on an «as is» basis, with no guarantees of completeness, accuracy, usefulness or timeliness and without any warranties of any kind whatsoever, express or implied.