TLT 20+ Year Bond Fund ETF Daily Chart Inverted H&S

TLT ETF daily chart showing an inverted H&S. The pink lines show a head at 88, neckline at 92, for a difference of 4, thus, 92+4=96 as a target. Typically when these H&S patterns break the neck line, as this one did above 92, price will come back for a back kiss, which it is doing now, then price will bounce upwards again to target the 96 destination. Interestingly, 96 is also the 200 MA level, and also a juicy gap that was left behind from the last day of November.

The upward channel shows higher highs and higher lows trending. Treasury yields in general should move sideways for the next couple years and the weekly charts back this up. The excessive inflation that is coming along with higher yields is probably not coming as fast as everyone thinks.

If TLT works up to the 96 level, that is price up, which means yield down; the opposite direction that most traders favor now. Possible asset relationship setting up is treasury price up and yields down=US equities down=dollar index up=euro down=dollar/yen up=commodities down. Watch the neckline 92 behavior over the next couple days to confirm if the inverted H&S is in play, or not. This information is for educational and entertainment purposes only. Do not trade based on this information. Consult your financial advisor before making any investment decision.