$TNX (10 year yields) Elliottwave Analysis: Near term pullback then extension higher

Daud Bhatti ElliottWave-Forecast.com

Short term Elliott wave count suggests that pullback to 1.542 at 9/28 ended wave X. The rally from there looks to be unfolding as a 5 wave move and could complete in 1.779 – 1.816 area. Afterwards, it would need to break below the red wave iv low at 1.718 to confirm wave (a) completed and wave (b) pull back would be expected to hold above 1.542 low for an extension higher. We don’t like chasing strength at current levels or selling the proposed pullback and expect to see buyers appearing in proposed wave (b) pull back in 3, 7, or 11 swing as far as pivot at 9/28 low (1.542) stays intact. Buying the 10 year yields is equivalent to selling 10 year notes ($ZN).

Author

Daud Bhatti

ElliottWave-Forecast.com

Daud Bhatti (Partner & Senior Analyst) joined Elliottwave-Forecast.Com in 2011 and only after a year was promoted to the position of Senior Analyst.

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