Throughout the last one month, I noticed that US10Y has been trading within an ascending broadening wedge chart pattern, and has been respecting the two diverging bullish lines that form its dynamic support and resistance extremely well.
After bouncing off the dynamic support of the ascending broadening wedge, US10Y is now halfway through its growth towards the dynamic resistance. I expect this growth to continue and hit around 1.75% by the end of March.
It is also interesting to note that if US10Y continues to move within this ascending broadening wedge (assuming status quo on a macro level), we are potentially looking at 2.5% to 3% yields by mid-2021.
I used mid-2021 as a reference point because this morning, I came across a Wall Street Journal article stating these:
"Economists in the Journal survey said they see annual inflation rising to 2.8% by the middle of this year, then falling gradually after that"
"“Inflation will reach levels rarely experienced over the past decade, at close to 3% in mid-2021, but uncontrolled overheating isn’t likely,” Mr. Daco said."
Source of article: https://www.wsj.com/articles/latest-stimulus-package-could-jolt-u-s-growth-revive-inflation-in-2021-11615372201
So I thought it will be interesting to compare it to the current ascending broadening wedge technical chart pattern that US10Y is current trading within, and it looks like we are definitely on track to those numbers if this continues.
Just some food for thought!
This is not an investment or trading advice so please do your own due diligence!
Support this idea with likes and share your thoughts below.
After bouncing off the dynamic support of the ascending broadening wedge, US10Y is now halfway through its growth towards the dynamic resistance. I expect this growth to continue and hit around 1.75% by the end of March.
It is also interesting to note that if US10Y continues to move within this ascending broadening wedge (assuming status quo on a macro level), we are potentially looking at 2.5% to 3% yields by mid-2021.
I used mid-2021 as a reference point because this morning, I came across a Wall Street Journal article stating these:
"Economists in the Journal survey said they see annual inflation rising to 2.8% by the middle of this year, then falling gradually after that"
"“Inflation will reach levels rarely experienced over the past decade, at close to 3% in mid-2021, but uncontrolled overheating isn’t likely,” Mr. Daco said."
Source of article: https://www.wsj.com/articles/latest-stimulus-package-could-jolt-u-s-growth-revive-inflation-in-2021-11615372201
So I thought it will be interesting to compare it to the current ascending broadening wedge technical chart pattern that US10Y is current trading within, and it looks like we are definitely on track to those numbers if this continues.
Just some food for thought!
This is not an investment or trading advice so please do your own due diligence!
Support this idea with likes and share your thoughts below.
