TLT (iShares Barclays 20+ Year Treasury Bond Fund) has been testing the previous lows from late December, and we feel ready to rally again. Most recently the Technometer has went from “Overbought” to “Oversold” in the past week, while the price has traded sideways. We like this type of action…
We show a closeup of the divergence between the Price and the Optimism-Pessimism. Also the Force is turning up, as well as the Technometer is registering Oversold.
Then we are showing the 5 minute TLT chart with the O-P at the bottom. You can see the clear divergence as the O-P keeps making new lows as the price makes higher lows.
All of these indications present a clear risk/reward trade in our favor. BUY AT THE MARKET!!