Don't Sell Bonds Just Yet

17. März 2018

A closer look at a long term channel line may indicate that TLT, while briefly breaking the long term support channel line, has gotten back above. I had been looking for a bounce to the 122-123 level, a previous support level, and then another attack of the 117 area and a further breakdown, completing a long term head and shoulders top formation. But this view, supported by a rising Stochastics indicator, shows that we might completing a corrective wave and getting ready for higher prices. I'll stay in the bullish camp for now, albeit against the crowd.