Can Treasury Bonds Reverse Higher From Historic Oversold Level?
2022.05.25 04:13
Long-Term TLT Monthly Chart.
It’s been an ugly few years for U.S. Treasury bonds. T-bond prices have dropped sharply as yields have risen.
This has been an added pressure on retirement portfolios, as treasury bonds are no longer trading like a conservative asset.
Today, we take a look at the long-term monthly chart of the iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT).
As you can see, two years ago, bonds peaked and formed a historic bearish reversal pattern at the highest momentum reading ever.
Since then, bonds have been in a sharp decline. Currently, TLT is testing support at its 61.8 Fibonacci retracement level (using 2004 lows / 2020 highs). So far this month, TLT has rallied back from a sharp decline.
Could TLT form an equally impressive bullish reversal this month (from historic oversold levels)? We should know the answer at month-end. Stay tuned.
