As an update to my prior post on the bigger wave structure for bonds (click here), I think that we are likely inside the corrective wave move after the first leg higher out of the major area of support I identified in that earlier blog post … here are my current thoughts.
US 30-Year Treasury Bond Futures (ZB) – 195 Minute Chart
Based on the look of the move/candles, the move higher out of support for bonds was clearly impulsive and not corrective. Therefore, I would expect at least another push higher by bonds after a period of consolidation/minor correction. The next move higher is likely to be made from a bigger level of support so I would look for price to make it down somehow into the typical SLOT support zone.
The next push higher will I believe, offer another attractive risk/reward trade and one that traders should be willing to swing trade.
Cheers … Leaf_West