Always consider hidden risks
US Treasury Bond TLT ETF: Critical Week?
June 16 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 performance indeed.
Looking especially at a Weekly chart on the TLT ETF (iShares 20+ Year Treasury
Bond ETF), we can observe that we are within a huge Rising Wedge that started
back since the week of August 24 2015. (See Chart Below)
We broke on on the week of June 6 2016 a Major Resistance Trendline that started
back since the week of January 26 2015which 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 speeking for the TLT ETF as Bulls need to protect the previous Breakout Trendline (See Chart Below - Top Thick Red Trendline - Ellipse) and ideally challenge the new resistances; the first is obviously coming from the Rising Wedge (See Chart Below - Grey Trendline - Ellipse), the second is the ultimate previous top at 138.50.
We will have to monitor carefully in the next few trading sessions as we complete the week...
US Treasury Bond TLT ETF: Critical Week? $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 )