Three Technical Possibilities, One Dismissed

• Blue: Bull flag implying higher rates. A breakout is underway.

• Green: Slanted head-and-shoulders pattern, implied direction is lower rates.

• Red: Normal head-and-shoulders pattern, implied direction is lower rates. Discarded.

We can discard the red H&S pattern because it failed. The blue and green patterns are valid, simultaneously.

The slanted H&S pattern broke in the required direction forming a bull flag in the process. The slanted H&S pattern is still intact as long as the green trendline is not broken.