Always consider hidden risks
US Treasury Bond TLT ETF: Price Compression?
June 01 2016 ( From Tradingview, Bloomberg )
If you would like to receive our free daily markets updates, please Sign-Up
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
Looking especially at a Daily chart on the TLT ETF
(iShares 20+ Year Treasury Bond ETF), we can observe that
we are within a huge price compression that started back since
February 11 2016.
We tested on May 31 2016 the Support Trendline of that
Price Compression technical pattern and rebounded violently.
(See chart below - Thick Red Line - Ellipse)
But few realize that as the TLT ETF tested that Support from that Compression Zone,
the SPY ETF tested on May 31 2016 a Major Resistance Trendline thta started on May 20 2015.
And it was done lately within a falling Volume on that ETF.
That tells me to expect higher price volatility on US Financial Assets...
We will have to monitor carefully in the next few trading sessions...
US Treasury Bond TLT ETF: Price Compression? $BONDS $TLT #Trading #bonds #investing #tlt
DAILY Chart (Candles)
TLT ETF ( iShares 20+ Year Treasury Bond ETF )
20 DMA ( Yellow Line )
50 DMA ( Red Line )
200 DMA ( Green Line )
Volume ( Bottom Blue Area )