TLT may have already bottomed out & the US10Y topped out with weekly hammer candles. TLT may find equilibrium at 132, my inflation pivot zone while US10Y may stabilize at 3.6% inflection point retesting its upchannel. TLT is now completing its M-pattern & has just entered my bullish BUY ZONE at 114 to 120. DCA Dollar cost averaging up from this point presents a very good risk-to-reward ratio. MORE DOWNSIDE? TLT may still go down to retest 108 where it bottomed multiple times in the past. Inflation expectations are slowing & the economy is starting to contract with oil & commodities turning down last week with investors pricing in a coming recession. Not trading advice.
Additionally the hammer was confirmed this week by the candle closing above the previous close... so hopefully it's going up from here.
joce-69003
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I agree on the 108 - especially if inflation hasn't peaked - I also think your dollar cost averaging into it is a good idea. The coming recession should also favor lower yields. Hopefully the dollar weakens against the yen and makes it even more attractive for the Japanese Pensiono to come back as net buyers.