Is TLT Getting Ready For A Move Up To 132?
Simit Patel | Jan 03, 2015 10:36PM ET
iShares Barclays 20+ Year Treasury ETF (ARCA:TLT), a fund that tracks 20+ year Treasury bonds, closed last week with a strong up day that tested a key resistance level. The chart below illustrates:
If we are in a deflationary cycle, we may see the US dollar and US Treasury bonds continue to strengthen and display an uptrend in price. This may also coincide with a decrease in the interest of US government bonds as notable bond investor Jeff Gundlach recently suggested in an interview. If this does happen, we may see TLT test 132, the resistance seen on the weekly chart below:
What do you think?
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