The TLT chart below was posted on 8/24, reflecting that TLT was up against the top of a trading channel, creating what looked like a rocking chair pattern. (see post here). At that time TLT was trading at $109….TLT gapped higher above this resistance line and moved a few percentage points higher.
Is TLT a “Forever Strong” ETF? See update below…
CLICK ON CHART TO ENLARGE
Gold and Bonds have been very strong this year! TLT is now reaching its 23% Fib resistance level (based upon the highs reached during the 2008 financial panic) a couple of resistance lines that are drawn from key turning point over the past few years.
TLT forever strong? Watch the price action of TLT real closely right now because if TLT can break above these resistance lines, I suspect equities are in big trouble.
Remain of the belief that the outcome of the Dollar support/Euro resistance test (see post here) , will have much to do with TLT action going forward.
Jim…Awesome question.
For me….whether it be govt, corporates or high yields, I prefer to look at a chart, without dividends re-invested due to wanting to see price for what it is. I don’t want dividends to mask/distort price.
Not saying I am right, just my preference,
Chris
http://stockcharts.com/h-sc/ui?s=TLT&p=D&yr=3&mn=4&dy=0&id=p34815064860&a=165275398
That link is to a TLT chart which takes into account the monthly dividends, thus yielding a very different chart. Which is correct reflection of the price action of TLT? Your chart or the one above.
The Intermarket Analysis linkage: Dollar support/Euro resistance test, will dictate Bond ETF (TLT) direction & which direction Equities will move out of the present Rectangle/aka Bearish Flag formation