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The above chart looks at the yield on the 30-year bond, from an “inverted” angle. Why invert the bond chart? This way it looks like bond “price.”
The 30-year yield (inverted) has peaked along line (A) a couple of times over the past 8-years. Last week a large reversal pattern (bearish wick) took place a dual resistance price point (1),, as it was attempting to break above resistance line (A).
Now yields are facing a test of steep rising support line at (2).
Should support break at (2), bond prices could dip for a while, giving back some gains they have achieved of late!
Due to decending scale, I think if support is taken out at (2), bonds could up in price…..