ZB Bonds Breakout: VWAP & SMA Breach Toward 161.8% Fib The recent price movement in ZB bonds presents a compelling bullish setup, backed by strong confluences. Here’s a precise breakdown of key technical factors driving this trade:
Bullish Breakout Confirmation
The price has successfully broken above the VWAP and the 209 SMA, signaling strong institutional momentum.
This break suggests a sustained bullish trend, as overcoming these key resistance levels often invites additional buying pressure.
Fibonacci Extension as a TP Target
Using Fibonacci extension analysis, we aim for the 161.8% level relative to the previous impulsive wave.
This level serves as an optimal target zone where price action tends to slow down, making it an ideal profit-taking area for traders.
Pullback & Confirmation of TP
A potential pullback to the 209 SMA would act as a critical test. If price retests this level and forms a strong green candle, it confirms sustained bullish strength and solidifies the TP target.
This reaction provides a reliable validation point before price reaches exhaustion at the Fib extension level.
Execution Plan:
Entry: Break above VWAP & SMA confirms bullish sentiment—ideal for initiating a long position.
Monitoring: Watch for a pullback above SMA to validate the rally.
TP Target: Set profit exit at 161.8% Fibonacci extension, aligned with wave analysis.
Risk Management : Tighten stop-loss levels if price fails to hold above SMA on a pullback.
Conclusion
This trade setup integrates multiple layers of technical validation, combining VWAP, SMA, and Fibonacci extensions to strengthen our bullish bias while offering precise entry and exit levels. A disciplined approach using this strategy helps minimize risk while maximizing potential profits.
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