US 30yr T-Bonds Ideal EntryEntry plan is based on the US 30yr T-Bonds Topping Pattern .
Watching the fib retrace area for a high that would establish the right shoulder within the monthly head and shoulder pattern.
Quarterly bull cycle counts point towards a high during Q1 '18 which aligns with the monthly target of February '18. My trading account would welcome an earlier high with open arms but it's entirely up to the market.
Ideally I'd be able to hop in around $160-$161 after a rejection of that fib area and then ride the move down to my first target at $128 (2013 low). I'll probably take profit there and then go long back to the neckline of this pattern before the next move down to $89 (2000 major low). We still have awhile before we see price prepare to turn so this is a watch and wait.
My target reward:risk ratio is at least 5-6:1, again that depends on what price action appears.
I'll publish a more detailed plan as well as my entry if/when that time comes.
For more in depth analysis on this trade and others checkout my site, PatsTrades. Link is in my profile status box.
Thanks!
Us_f
US 30yr T-Bonds Topping PatternThis is my favorite and the cleanest opportunity I have been able to find across all sectors/markets. I've been watching this develop for quite some time now and the evidence for a large sell-off into the future is piling up. The head and shoulder pattern on the quarterly/monthly is one of the best things in that pile.
We saw a false break to the upside during 2016 but then sold off hard to close below, forming a very large yearly high-test candle. We stalled at support during Q1 and have since rallied into Q2, establishing the neckline.
I'm now waiting for a retest of the fib retrace levels where a right shoulder would ideally form. If that does occur I think we'll see a continuation of this new long-term bearish trend that should head down to the Q4 '13 key low. If the stars align price will then bounce from there to establish a neckline within a much larger head and shoulder pattern with price pulling back to our current neckline and the fib retrace levels which would be sitting right on top of that area. We would then head down to retest the Q1 2000 low.
This entire theory could take between 5-10 years to play out but man is it the perfect candidate for the "big cahuna" title...
Checkout my website @ patstrades.com for more in-depth analysis on this trade and many others. The link can be found on my profile page in the status bar right below my picture.
Thanks for reading!
