Always consider hidden risks
US Treasury Bond IEF ETF: At Support Zone?
July 13 2016 ( From Tradingview, Bloomberg )
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Since the beginning of the financial crisis, the Federal Reserve has been obliged to inject tons of liquidity into the system. Financial assets like the US Treasury Bond had a very good performance indeed. Poilitical uncertainties and weak economy abroad just keptthe momentum going...Looking especially at a Weekly chart on the IEF ETF ( iShares 7-10 Year Treasury Bond Fund ETF ), we can observe thatwe are pushing valuation again to the limit as history suggest when we have turmoil like the Brexit vote.We broke on June 27 a huge Daily Rising Wedge Pattern on the IEF
ETF that started since January 2016 as shown by the chart below.(See chart below - Thick Blue and Grey Lines)But few realize that already, we are back testing the Major Support Trendline of that Rising Wedge that started back since January 2016. (See chart Below - Top BlueTrendline - Ellipse)
And it was done lately within a rising Volume on that ETF. (See chart below - Bottom Blue Area)
Do not be mislead here; the move from June 27 til now was for me a Capitulation wave. We may go into a consolidation wave before a bearish move that need to be confirm when and only when we will break the Grey Support Trendline from that rising wedge. The problem is that we have 2 full figure from there...
We will have to monitor carefully in the next few days...
US Treasury Bond IEF ETF: At Support Zone? $BONDS $IEF #Trading #bonds #investing #ief
IEF ETF ( iShares 7-10 Year Treasury Bond )
Volume ( Bottom Blue Area )