The long bond price did its correction after the Fed Chairman’s last speech. Fear of inflation and a rising interest rate caused the bond price to drop back to the top line of the downtrend channel.
But last Friday the price managed to close above that downtrend line, which could indicate the previous up move hasn’t completed yet.
A move above 91.40 will lead the price back up to 92.40 or higher up to 94 area.
There is a gap between 89.71- 89.42 range. This gap needs to hold up to convince the buyers to stay in their long positions.
A move under 89 will likely send the market down to retest the previous low area 87.30
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TLT – 20-year bond Daily chart
