Thursday, March 27, 2014

Bonds creating bullish inverse head & shoulders pattern?

by Chris Kimble

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2013 wasn't kind to the bond market, one of the worst years in a long, long time. The decline in bond prices drove TLT down to its 38% Fibonacci retracement level.

Could TLT be forming a bullish inverse head & shoulders pattern after the big fall? Possible! TLT is now facing resistance line (1), which could also be a neckline of this pattern.

TLT has proven nothing at this time towards this bullish pattern! How it handles resistance line (1) should tell us a good deal about bond and stock prices a few weeks out!

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