Chartbook: Chart GER 10 Year Yield: Approaching critical support - monthly studies under pressure

The anticipated break below congestion around 2.300% is meeting support above congestion around 2.000%,

with May losses giving way to cautious trade.

Monthly stochastics and the monthly Tension Indicator continue to track lower, highlighting a bearish tone and room for still cheaper yield prices into 2024 Q4.

However, a close below critical support at the 1.887% year low of December 2023 is needed to complete a multi-month distribution top and confirm a significant top in place at the 3.024% year high of October 2023. Focus will then turn to next significant support within congestion around 1.500% and the 1.522% Fibonacci retracement. Already oversold monthly stochastics could limit any initial tests in fresh range trade.

Meanwhile, resistance is at the 2.350% break level.

A close above here would provide short-term stabilisation, but mixed/negative weekly studies should limit scope in renewed consolidation beneath the 2.707% current year high of May 2024.

An unexpected close above here is needed to turn price action cautiously positive and open up a test of critical resistance at  congestion around 3.000% and 3.024%. Further continuation beyond here would reinstate bullish sentiment and confirm continuation of the bull trend from the -0.908 all-time low of March 2020.