Sunday, July 7, 2013

TLT 20+ Year Treasury Bond Fund ETF Positive Divergence

TLT is setting up for a bounce but the trade would require a nimble approach. The large gap down has momo to it so a couple days are likely needed to clear the decks but TLT should place a near-term bottom this week, and bounce. The weekly chart remains weak, however, and the 97-103 area has to remain on the table. Hence, the entry for any long TLT trade would be important, as well as a quick exit, when the positive divergence bounces price to 109 and perhaps the gap at 111. There are lots better trades out there available so this is not an attractive trade in comparison but for those that follow the TLT and TBT ETF's closely, the TLT may have a slight advantage, say, over the next one to three weeks. Price will need to base early this week and as it does the positive divergence green lines will have to verified that they remain positively sloped. If not, then another couple days are required before the positive divergence bounce occurs. This information is for educational and entertainment purposes only.  Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.

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