US government bonds have come under pressure over the past year. And that decline has come to an important inflection point.
Time to bounce higher? Or will government bonds continue to sink lower?
That is the theme of today’s “weekly” chart from Marketsmith.com, of the popular long-dated US Treasury Bonds ETF (NASDAQ:).
TLT’s decline stalled out at a popular 7-year support/resistance line at (1). It has since traded sideways for the past 3 months and is toeing this important support line at (2).
Something has got to give… If buyers step to the plate, we could see a tradable bounce/rally in government bonds. However, if this important support line fails to hold at (2), then TLT will continue to sink! Stay tuned!
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