The 10-Year Is Retesting Its Inverse H&S Neckline
Trader Moe | Dec 23, 2015 11:49AM ET
ZN is Retesting its Red Megaphone VWAP & Navy Blue Inverse H&S Neckline
The US 10 Year T-Note is retesting its inverse H&S neckline (navy blue on chart). It put in the orange megaphone to get the price back to here and is now a strong favorite to put in a trip to the megaphone top before another retrace to VWAP and breakout upwards to the red megaphone top.
After its late November low, ZN started a trip to the red megaphone top but reversed at the level of the previous megaphone high–that is a classic 5th wave false top. The next wave up to the red megaphone top ought to be very fast.
If instead of breaking out to the red megaphone top ZN gets bogged down forming a new megaphone at the orange megaphone VWAP, it is likely forming a triangle before completing the move up.
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