Treasury Bonds and the 20 Year Treasury Bond ETF (NASDAQ:TLT) have experienced a big selloff this fall. But that may be set to change, at least over the near-term.
Back in July of this year, I warned that 145 was a big deal for TLT. This was based purely on the price patterns.
Here’s a quote from that post:
I try not to pay attention to outside fundamental/news items and just look at the charts and the PATTERNS. Trade what you see, right? I see some very stretched and parabolic fixed income assets ready to produce a rising rate environment.
From the updated chart shown below, you can see that 145 was a big deal.
From a trading standpoint, though, treasury bonds are likely to bounce. TLT has completed a “square root” correction, a 1.618 extension and measured moves… one could possibly count 5 waves down as well.
Hence, I believe we are due for a bounce in the treasury bond ETF (TLT) and would expect it to be about as big as the red arrows.
Thanks for reading and good luck out there!
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.
