5-year US Treasury Yield Working with Long-Term and Medium-Term

TVC:US05Y   US Government Bonds 5 YR Yield
In the previous Weekly Market Insight, I directed the technical spotlight to a long-term harmonic equivalent AB=CD bullish structure on the 5-year US Treasury yield weekly chart in a market trending higher since August 2020. The AB=CD zone, as you can see, has offered this market a technical floor since mid-March, denoted by the 100% projection at 3.243%.

What’s interesting, though, is on the daily timeframe we can see that the reaction from the weekly AB=CD floor has carved out a daily equivalent AB=CD bearish pattern at 3.757%. This, coupled with Wednesday’s bearish Shooting Star candle pattern and nearby dynamic resistance derived from the 200-day simple moving average at 3.700%, could be enough to motivate a downside move this week to test at least the 38.2% and 61.8% Fibonacci retracement ratios (derived from legs A-D) at 3.558% and 3.437%, respectively.

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.