Always consider hidden risks
US Treasury Bond TLT ETF: At Technical Crossroads?
July 7 2016 ( From Tradingview, )
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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.
Looking especially at a Weekly chart on the TLT ETF (iShares
20+ Year Treasury Bond ETF), we can observe that we are above
the resistance trendline of a huge Rising Wedge that started
back since the week of August 24 2015. (See Chart Below - Grey Trendline)
We broke on on the week of June 6 2016 a Major Resistance Trendline
that started back since the week of January 26 2015 which was the
previous big peak in price at 138.50 on TLT ETF.
(See chart below - Top Thick Red Trendline - Ellipse)
But few realize that as the TLT ETF continue to defy gravity as most managers were quite bearish on US rates since the beginning of the year.. As rates all over the world continue to tumble, US rates remains one the highest quality at the highest rates available with still some good relative liquidity.
It is becoming a Critical Week technically speaking for the TLT ETF as we are testing the Major Resistance Trendline that started back since December 2008. (See Chart Below - Top Thick Blue Trendline - Ellipse)
So this week is a crucial test as we will make the difference between a Major Top in price or a Major Breakout for the TLT ETF.
We will have to monitor carefully in the next few trading sessions as we complete the week:
as we can say, TLT ETF is definitively at Technical Crossroads...
US Treasury Bond TLT ETF: At Technical Crossroads? $BONDS $TLT #Trading #bonds #investing #tlt
WEEKLY 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 )