UST trade ideas
UST/SPX:BONDS/STOCKS RATIO BREAKING OUT?Price kept coming down inside this down trending channel for the last two years.
1,618 area gave two long entries, first being the most successful so far and second being the most safe and low risk due to double bottom and bullish divergence at the end of March.
Major obstacle now, after broke the upper channel line, is the last known overhead supply, that is stopping price the last three months.
If it's an original break out, or a false one - like it did couple of times with the dashed wedge line in the daily tf - remains to be seen.
MA65 works very well in the daily chart.
Cheers,
P
Possible double bottom at 1,618 for bonds/stocks ratioPrice has been contained in the downtrending channel for a couple of years now.
Possible double bottom at 1,618 fib, looks like Adam and Eve, but measuring the the distance from left (A) and right edge (C) to middle peak of Feb 2nd bar (B) can be Eve & Eve at the end, which has better success rate. Obviously, a break up from the middle peak will confirm the formation.
Momentum is strongly diverging hinting at a possible break. Mind the break from the channel, as is right at the major supply zone and could be proved fake the first time to confuse longs.
MA 65 works fine in the daily (not shown) and currently is flat sloping. If price breaks above and we get confirmation of the DB, can be really good long trade for bonds.
Cheers
P.
