Treasury Bonds Rally Nears Key Price Resistance Area

James Bartelloni

In my last update on the 20+ Year Treasury Bond ETF (NASDAQ:TLT) and broader bond market, I highlighted the case for a deeply oversold market and targeted areas to go long and  ‘expect’ a rally.

Here’s a link to that article:  Long Duration Treasury Bonds Are Deeply Oversold

The TLT scraped bottom for a while, moving sideways for a few months before starting a multi-month relief rally.  So what’s next?

Let’s look at the chart below. Of note, you’ll see a forecasted target zone that was based on a substantial gap down on the daily chart.  TLT has rallied up to his area and should now be watched closely for signs of weakness.

I’ve also highlighted the ‘key’ trend line to monitor.  IF we are still in a bullish environment THEN this trend line (black dashed) should hold any pullbacks.


20+ Year Treasury Bond ETF (TLT) Chart

tlt 20 year treasury bond etf trend line support_5 september 2017

Additionally, the 30 year continuous contract bond has smacked into major resistance.  Note the dashed black trend line labeled “key support” … keep an eye on this level for key support and to see if bonds will continue lower (rates higher).

30 Year Continuous Bond Chart

30 year bond continuous contract price resistance chart_5 september 2017

Thanks for reading and good luck out there.


Twitter:  @BartsCharts

The 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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