TLT snaps to lowest close since September 19th
iShares 20+ Year Treasury Bond ETF (TLT) Technical Analysis Report for Oct 11, 2019 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, TLT ended the week -3.8% lower at 140.44 after tanking $1.76 (-1.24%) today on high volume. Today's close at 140.44 marks the lowest recorded closing price since September 19th.
Daily Candlestick Chart (TLT as at Oct 11, 2019):
Friday's trading range has been $1.39 (0.99%), that's slightly above the last trading month's daily average range of $1.36. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for TLT.
Prices are trading close to the key technical resistance level at 141.14 (R1).
Although the ETF is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Lower Closes" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for TLT. Out of 119 times, TLT closed higher 56.30% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 52.94% with an average market move of 0.23%.