TLT Heading Up?

Published 02/12/2015, 12:30 PM
Updated 07/09/2023, 06:31 AM

iShares Barclays 20+ Year Treasury (ARCA:TLT) -- an ETF tracking long-dated US Treasury bonds -- was on a pretty strong uptrend since December 23 of 2014 through January 30 of 2015, though February has seen a bit of a cool off. As the chart below illustrates, the market is coming very close to touching the 61.8% Fibonacci retracement level of the December 23-January 30 move. Moreover, the 50-SMA is there also, making 129 a confluence level of sorts. Furthermore, we're seeing price consolidate over the past couple days, which may suggest that a bounce is on its way.

Is this a good time to buy?

 iShares Barclays 20+ Year Treasury

Personally, I think an interesting setup might be to go long at 129.25 with a stop at 128.40 and a target profit at 138.25, essentially at the January 30 high. This would give a reward/risk of over 10.5.

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