What Does Bond Pattern Mean?
Chris Kimble | Mar 27, 2014 11:31AM ET
2013 wasn't kind to the bond market -- one of the worst years in a long, long time. The decline in bond prices drove iShares Barclays 20+ Yr. Treasury (ARCA:TLT) down to its 38% Fibonacci retracement level.
Could TLT be forming a bullish inverse head-and-shoulders pattern after the big fall? Possible. TLT is now facing resistance line (1), which could also be a neckline of this pattern.
TLT has proven nothing at this time toward this bullish pattern! How it handles resistance line (1) should tell us a good deal about bond and stock prices a few weeks out.
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