Treasury Bond ETF (TLT) Nearing Upside Trading Targets

James Bartelloni

It’s been a wild ride for US Treasuries this year. After a big rally that sent the 20+ Year US Treasury Bond ETF (TLT) to new highs in early 2015, bonds reversed lower. And faster than many treasury bond holders probably expected. And as TLT was falling, I wrote about going long TLT around 115-117 (my price target/buy zone).

That seems like a long time ago …

Here’s an excerpt:

Treasury bonds have been a safe haven for the past 5 years. But this latest down turn has really spooked some investors. And for good cause. Rates appear like they are setting up for a rise. But that’s not today’s business. Right now, it looks like rates may stabilize and head back down. Again, just for now.  And note that bond sentiment that is getting worse each day. This could be a tradable setup for the 20+ Year Treasury Bond ETF (TLT).

Well, TLT has rallied back above 124. That’s a nice gain so far off the lows for the treasury bond ETF… So today I want to provide a quick update on upside price resistance and potential price targets. As you can see, 125-128 looks like a sell zone for traders.

tlt treasury bond etf price target chart

In my opinion, traders shouldn’t be greedy here. I believe this rally to be a “counter-trend” rally that may stop soon and begin another leg lower in earnest.

Thanks for reading and have a great week.

 

Twitter:  @BartsCharts

Author does not have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.

 

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