Spike Reversal Pattern on Bonds (TLT)

Yesterday's close on TLT broke the day's range causing many to think it was going lower. However, today's open reverses that sentiment by opening back above that short term range.

Bonds are a very cyclically trending instrument (see below) and at some point the down move of the last few days was likely to reverse. This could be the setup with a low risk stop to get long TLT.

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My best drawing to illustrate the criticality of bonds price action. Not my personal style. This was pointed out to me by another trader that specializes in leveraged bond products.

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My trading partner while writing this...