30-Year Treasury Yield @ Major Support ~ 3.40%

In our 12/6/13 ChOTD, we highlighted the resistance the 4% area presented for the 30-Year Treasury Yield, due to key Fibonacci retracement lines, the 25-year down trendline and “various powers with a strong interest in preventing this breakout in yields”. That resistance held. Where does major support come in for the 30-Year? Right at present levels ~ 3.40%.

The 3.40 level represents the approximate following areas:

  • June 2013 gap breakout

  • 38.2% Fibonacci retracement from the July 2012 Low

  • 50% Fibonacci retracement from the May 2013 Low

Should the 3.40% level fail, the 30-Year yield could hit an airpocket down to 3.25% where the post-2012 up trendline, 500-Day SMA and 61.8% Fibonacci retracement from the May 2013 low lie.