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Writer's pictureLester Davids

U.S. 10-YEAR BOND YIELD Bullish Momentum However, Approaching Short Term Overbought



Overall Summary


The image presents a price action analysis for the US 10-Year Bond Yield, focusing on three timeframes: Short Term (1-10 days), Medium Term (2-4 weeks), and Long Term (5-8 weeks).


Key Observations

7-Day Trend: High Bullish Momentum, Approaching Overbought

14-Day Trend: Very Bullish


Short Term (1-10 days): Price Action Reading: Very Strong Move, Buyers in Control, but Don't Chase - May Fail to Hold the Highs; If it doesn't hold, the 8-EMA may be a short-sell target.


Medium Term (2-4 weeks): Price Action Reading: Aggressive Buying but Do Not Chase - Look for Overshoot or Failure to Hold Prior Session Highs to Short-Sell Back to the 8-EMA.


Long Term (5-8 weeks): Price Action Reading: Attempting to Advance Whilst in a Bullish Regime - If it Pulls Back, Use Prior Session Close or 8-EMA as an Accumulation Zone.


Interpretation

Bullish Momentum: The price of the US 10-Year Bond Yield has been rising strongly in the short term.

Caution: The momentum is approaching overbought territory, suggesting a potential reversal.

Trading Strategy:


Short-term traders: Be cautious of chasing the price higher. Look for signs of weakness (like a failure to hold recent highs) to potentially short-sell.


Medium-term traders: Avoid chasing aggressive buying. Look for opportunities to short-sell if the price overshoots or fails to hold prior session highs.


Long-term traders: Maintain a bullish bias. If the price pulls back, consider accumulating (buying) near the prior session close or the 8-EMA support level.



Lester Davids

Analyst: Unum Capital

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