Bonds Are Poised To Surge
Dragonfly Capital | Sep 26, 2014 10:18AM ET
Four points in the chart of the 20-Year Treasury ETF (ARCA:TLT) suggest that it's poised to take another step higher. After a pullback through most of September, the ETF found a bottom near the 113 area and has reversed higher. What happens next?
The chart above shows that the price action Thursday printed a bullish Marubozu candle, which is special because it opened at the low and closed at the high. Bullish action all day long. That price action happened as it crossed both the 20- and 50-day SMA’s. Price is now on the bullish side of all the moving averages. The RSI in the top of the chart shows that momentum is growing into the bullish zone. Finally, the MACD at the bottom shows a bullish cross higher a couple of days ago and continued movement higher. These combine to support higher prices. The next possible trouble area looks to be the gap that starts the 117.38 and then the prior highs at 119.37.
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