Technical analysis is great for free market securities, but, when it comes to treasuries, the Fed remains the bigger decider of price direction. Fundamentally, this instrument is set to go down further. The positive economic outlook pushes the Fed to raise rates and prices do not reflect their target yet. Over the coming two years, unless there is a dramatic...
possible bearish symmetrical traingle/ pennant on the daily.
As I did with the daily chart yesterday, I connected a trend line with the two previous swing lows and let them travel in time, then I put a vertical line on the swing high afterwards. And for the past two months, the 106.62 area was holding up as support. If current price doesn't come back up to that level, then the next area of interest I'll be watiching is...
I placed a trend line connecting the two swing lows and let it travel in time. Then I placed a vertical line on the swing high afterwards on 3-29-18. And where the two intersect at is where I'm looking as a possible support area in the future. Price finally hit that area today @ 105.91. Waiting to see if it holds up or not. (Also on the chart are a 50, 100, and...
Price action today is confirming the trend. Worth watching as traders seem to be pricing back in a "lower for longer" trajectory on interest rates.
Ratio chart of iShares Core U.S. Aggregate Bond ETF (AGG--the most widely held bond ETF) to SPY (i.e. AGG/SPY). Shows bullish forming saucer (or rounding bottom) in AGG against SPY...i.e. that risk-off (AGG) looks to be putting in bottom against risk-on (SPY). Also has bullish RSI divergence. See bottom in 2007 for similarities.
Price has stalled out around 110. Bear divergence in MACD and RSi similar to spy, and other major indexes right now
We had a little concern in the junk bond market. Overall bond market seems quiet. No smoke, no fire.
AGG is testing very strong support trend line. Though, I would wait for a upward movement of CCI indicator above -100 to buy.
Todays candle went over a strong resistance zone, look back and notice who many times price tested this zone, now it just needs to close over to stay confident. Also Bollinger Bands are still expanding, also good indication to stay long. I still stay with target "at least" around 108 I posted on