By Annie Pei, CNBC 
The bond market is about to breathe a sigh of relief, TradingAnalysis.com founder Todd Gordon told CNBC's "Trading Nation" on Thursday.
Looking at a chart of the ETF that tracks longer-term Treasurys, Gordon said the bond market is oversold as yields remain overbought. He expects a relief rally around the corner. Here's why:
- Gordon observes that the 20+ Year Treasury ETF (TLT) has just completed the fifth wave of the Elliott wave theory, which according to him usually indicates that the trend momentum is about to decrease.
- Given TLT was generally in a downtrend, Gordon says that this rate of change in momentum means that the "interest to sell is decreasing" for TLT, and TLT is about to head higher.
- Gordon also mentions that the move against the trend typically mirrors the level of the fourth wave, in this case $122 on TLT.
- This $122 level on TLT, according to Gordon, is also confirmed by small Elliott waves that are found within each wave, and even those indicate that TLT is heading to $122.
- As a result, Gordon wants to buy the June monthly 118-strike put and sell the June monthly 122-strike put for a total of 90 cents, or $90 per options spread.
- If TLT closes above $122 on June 15 expiration, Gordon could make $314 on the trade. If TLT closes below $118 on June 15 expiration, however, Gordon would lose the $90 he paid for the trade.
The trade: Gordon is suggesting buying the June monthly 118/122 put spread for 90 cents, or $90 per options spread.
Bottom line: Gordon believes that bond prices will rise, and TLT will return to $122.
From CNBC