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Friday, May 17, 2013

TLT bottom?

TLT is looking kind of interesting here.  Lets start with the weekly chart.


TLT topped last July and entered into a prolonged correction.  This year it bounced off of the 100 week MA (white line).  It is now testing that MA again and appears to be bouncing off it.  Lets zoom in to the daily chart.


The yellow line price is bouncing off of is the 500 DMA (equivalent to the 100 week).  TLT made a bullish high volume hammer candle yesterday and followed through on the upside today.  This looks like a serious attempt at making a bottom here to me.  Is the correction in bonds that started last July coming to an end?  It is probably a bit too early to tell, but it looks like a definite possibility.  There are a number of big green volume bars that add some credence to the potential bottom pattern.  If that turns out to be the case it could be a negative for stocks.

Bob

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