It has indeed been the case that the technical chart pattern of the 10-year US treasury yield had indicated the yields had encountered resistance. The 10-year treasury yield has also fallen below its 50-, 100- and 200-day moving averages at 4.48%, 4.33% and 4.34% respectively. To confirm the weak chart pattern, quarterly momentum has broken below its support / equilibrium line into negative territory.
A few short black candles appeared during the week of June 3-7, with the Straits Times Index losing three points week-on-week. Short term RSI tested its overbought line and retreated. On the other hand, quarterly momentum remains intact, and this should continue to support the STI. In terms of longer term indicators, the 50-, 100-, and 200-day moving averages remain positively placed.
The current consolidation phase should find support at 3,300. Following the break above 3,250, and the move above 3,300, the target indicated is 3,450 and this remains valid.
