August 5, 2010
Shares of the ETF iSHARES Barclays 20+ Yr Treas (NYSE: TLT) have been trading between support at about $98 a share and resistance at about $102 a share for over a month after a two month rally from $87.47 ended.
On Wednesday, August 4, TLT declined to $98.56, just a fraction above support. This support level, which has held since June 22, is an important one. If TLT closes below it we could see declines that push prices quickly down to the $96 level.
A bearish indicator for TLT has been the two attempts to break out above $102 in July. Each reached lower intra-day highs and a third rally attempt on July 30 failed at $100.61.
Since then TLT has been declining and now stands just above critical support.
The Fibtimer.com (http://www.fibtimer.com) ETF Timing Strategy holds a position in TLT.
Disclosure: The Fibtimer.com (www.fibtimer.com) ETF Timing Strategy holds a position in TLT.