As discussed in previous post the Vanguard Intermediate Term Bond ETF (BIV) confirmed a break down through the neckline of the Head & Shoulders Top reversal pattern several weeks ago.
BIV ETF Head & Shoulders Top
BIV has now retraced back to “test” the resistance of the neckline. Although it may still go higher before reversing recent price action now provides a support level that when broken signifies the liklihood of a completion of the retest and trend continuation down. Of course it’s possible that the pattern will fail to the upside and in that case no entry would be signalled.
Swing low support of $79.42 can be used and if broken would indicate momentum turning down. $78.09 is the minimum target for the H&S Top.
