Drop Expected In The iShares 20+ Year Treasury Bond Fund ETF (TLT)

buyers and sellersTrading Central: From a technical view, the ETF is shaping a major Head & Shoulders pattern on a weekly chart which is a reversal one.

Regarding technical indicators, both the 20-week and the 50-week moving average are reversing down and call for a drop. Furthermore, the weekly MACD is going to push below its signal line increasing downward momentum.

On a relative basis against the IVV S&P500, the iShares 20+ Year Treasury Bond Fund has validated a key triangle and looks set for an important down move.

Trading strategy:
Short Sell @ $117.34 – Stop loss @ $122.5 – Target @ $98

Ratio TLT versus iShares IVV SP 500





MACD: this indicator (Moving Average Convergence / Divergence) reflects a difference between moving averages and refers to the ascendancy or not of the mid-term relative to the short term. The considered average lengths are respectively 26 days (0.075 exponential coefficient) and 12 days (exponential coefficient of 0.15). RSI: (Relative Strength Index) a technical indicator which measures the magnitude of gains over a given time period against the magnitude of losses over that period. The equation is RSI = 100 – 100 / (1 + RS) where RS = (total gains / n) / (total losses / n) and n = number of RSI periods

For more information on iShares ETF go to:


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