Bondificate
The 30 Year Bond has completed
a Bearish Gartley Pattern. Now what? Let’s review the swing trading scenarios
that this set up presents.
Scenario 1: G.I.G (Gartley
Is Good)
Ideally, under this scenario
Tuesday’s high holds and US2Z continues to sell off. If this happens the first
objective area will be down around 110`22-111`15. If that zone is violated and
continues to trade on the southbound track, then there is a high likelihood
we travel down to the previous low we made on October 24 @ 107`02.
Scenario 2: G.O.B.I. (Gartley Out Butterfly In)
In this scenario price trades
above Tuesday’s high. If this happens there is a significant “air pocket” that
could potentially lead to a fast and furious move to the upside. An air pocket
is simply lack of Fibonacci price resistance levels. This would play out quite
well too because if that rally does unfold we would have a Bearish Butterfly
pattern that completes up around 117`10.
The game plan is in place.
Now, let’s step up to the plate and let this market throw the pitch.
Have a great night!