Monday, February 7, 2011

The Importance Of 88.81 For iShares Barclays 20+ Yr Treasury Bond

iShares Barclays 20+ Yr Treasury Bond technical analysis chart:

20 year treasury bond hit the diagonal support line(see the chart in pink). This line has potential to play an important role in coming days. $88.80 will be a significant level for TLT in coming days. Please note we could get a fake move for a day or two but I'm looking for a big bounce in coming days. If treasury bears push the TLT below $88.81 for a couple days it will tank to $82.00, at this point it is very unlikely but I like to point the possibility.

S1: $88.81(major)
S2: $88.00
S3:$82.00 (major)