/ZB (30-yr Treasury bond futures) will offer an objective long entry on a solid break above this minor downtrend line with a current maximum price target at the first of the downtrend line and/or 114’100 price resistance with the potential for additional targets up to the 117’220ish resistance, depending on how the charts develop going forward. Suggested stops commensurate with one’s price targets using a 2:1 or better R/R. 60-minute chart below.
ZB 60m Oct 19th
For those that prefer ETFs over futures, TLT (20-30 yr Treasury bond ETF) will also offer an objective long entry on a solid break above this 60-minute minor downtrend line with a current max. potential target: 1st of the downtrend line or 95ish resistance level.
TLT 60m Oct 19th
While these setups can be taken as standalone trade based on their own technical postures, a long position in Treasury bonds might also be considered an indirect hedge to a swing short position on the equity markets as there is a decent chance that a rally in bonds (i.e.- falling yields) would coincide and/or result in a rally equities. Due to the inherently lower volatility in Treasury bonds (relative to the stock market), the suggested beta-adjusted position size for this trade is 2.0.