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Inverse H&S On The 10-Year Targets Taking Out October High

Published 11/17/2015, 11:44 PM
Updated 07/09/2023, 06:31 AM

10-Year 6M-D Chart

ZN Inverse H&S (Red Neckline) at Blue Megaphone VWAP Targets Taking Out October High

The 10-year t-note has put an inverse H&S on its daily and 60-minute charts with a neckline at VWAP of the blue megaphone.

An upwards breakout from the inverse H&S would target taking out the October high by a little.

If the breakout turns into a megaphone right shoulder, it means a delay but the formation would still usually break out upwards when the megaphone completes.

A breakout downwards from the inverse H&S would mean a trip to the orange megaphone bottom, but you’d have to watch out for a bottoming pattern to form at the blue megaphone bottom for a big move upwards.

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