TLT Now Nearing Critical Support Zone
Simit Patel | Jun 29, 2015 12:30AM ET
iShares 20+ Year Treasury Bond (ARCA:TLT), an ETF tracking long-dated US Treasury bonds, has been declining at a fairly remarkable rate since it topped at the end of January. We are now at a critical support level, as the chart below illustrates.
For those who believe the bull market in Treasury bonds is not over yet, 111.50 to 114.50 may be an interesting level to accumulate a long position. Conversely, shorts who missed out on the initial downside movement may wish to wait for a rally from this level to find opportunities to short from.
Personally, I'm more interested in the downside movement and thus am on the lookout for rallies to short from. If we rally from here to 122.50, I think that may be an interesting level from which to enter a short position.
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