The 10-Year T-Note has Reached its Megaphone Top and Needs a Retrace to at Least the Megaphone VWAP
The 10-year has reached the top of a megaphone (red on chart) on its 60-minute chart. It needs to complete a topping pattern at or across the formation top and then retrace to at least the megaphone VWAP.
I could do an entire post on the subtleties of the topping process before the return to VWAP, but suffice it to say that the 10-year could still make a higher high to complete the head on a head and shoulders top.
The red megaphone is an interior megaphone across the VWAP of several larger megaphones on the daily chart, including a scary-looking big mama megaphone that began forming in 2011. That would usually mean the 10-year is forming a large triangle continuation pattern before a blast-off to the big megaphone top.
The T-Note is Likely Forming a Continuation Triangle Across VWAP of the Big Megaphone that Began Forming in 2011
The blue megaphone is likely to redraw on that blast-off because the existing top is awfully steep, but still the 10-year would be traveling up to well past the 2012 high.