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Historic Bond Rally Eyes Possible Reversal

Published 09/05/2019, 04:46 PM
TLT
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iShares 20+ Year Treasury Bond ETF

Government bonds have experienced a massive rally over the past 4 months. The question is, could that rally be over or is it just ready to take a breather?

Hard to say.

Government Bond ETF TLT has rallied over 15% in the past 16 weeks at (1). Which makes it the 3rd largest 16-week rally in the past 16 years.

The rally in TLT has it testing the top of its 8-year rising channel as it kisses the underside of a rising resistance line at (2).

When you combine the performance of TLT and the dual resistance in play, it increases the odds that it's time for TLT to at least take a breather.

It remains possible this is a price zone that is an important reversal for TLT.

Stay tuned.

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