iShares Barclays 20year Treasury Bonds (NYSE:TLT) : Resistance turns support levels to watch

TLT has continued on its way down; breaking the previous support at 92.50 easily.

There is a support level at around $90.50 but look at the price action of the chart, it is likely that it won’t hold for long.

My eyes are on the next support at around $88 . This is the level where it has attempted to break through in the first half of the year. It took it 3 tries to break this before it took off.

This ‘resistance turn support’ will be a stronger support level than the immediate one at around $90 and will be a good level to look for consolidation and possible reversal activities.

On the Ichimoku Weekly Chart, TLT is now sitting right at a thin kumo which suggest that the support is not strong.

By iam802

Trend trading with Ichimoku