Description
⋅ It seems like the 10 year treasury yield formed a head and shoulders pattern.
It broke below the neck line on Friday May 20th 2022 which confirms the pattern.
Now we'll have to wait and see if it retests the confluence of resistance around the 2.869% area.
A dip in the 10 year yield may cause a rally in the tech sector and also in the general market.
The measured objective of this pattern would be around the 2.4% area over the coming weeks.
However, there are two levels of support in the way.
1) 2.66% which is a short term support level
2) 2.55% which is a historical level of support.
If we close below 2.55% we may be able to expect a further drop in the yields.