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Bond

iShares Barclays 20year Treasury Bonds (NYSE:TLT) : Bearish move resumes

As mentioned previously, TLT counter trend move may end soon.

Yesterday’s price movement is a good indication with TLT having a very small price range as it face resistance from the Kijun sen (trendline).


The opening gap down for TLT provides confirmation of a reversal on the Ichimoku Daily Chart.

With a gap down in the opening, my preference is to wait and observe how the price move in the first few minutes. There is a tendency for the price to move up and attempt to close the gap before it resumes the downward move.

In this instance, TLT move according to my expectations.

Next, is to find a good entry for the short.

My setup involves 2 screens : 1min and the 5min Ichimoku charts side by side.

The 1 minute Ichimoku chart provides the entry when it fails to break above the kumo resistance at around $97 when it reverse on opening.

The confirmation for the entry comes when the Tenkan sen cuts the Kijun sen on the downside.

This is confirm by the 5 minute chart which shows a candlestick reversal.

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By iam802

Trend trading with Ichimoku