Huge drop since January 2022. If you connect all the big lows since 2013 and draw a line you will notice that TLT is now sitting on a huge support and has starting to bounce off the 119 level (Green line). RSI weekly and daily oversold.
Let's see if we can get a decent bounce.
I'm long April 29 call. We can target 125, then maybe 130. Stop loss at 119.
Trade safe
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Long May 20 call, not April
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Now retesting that green line where it broke down. Let's see if we go back above it.
very interesting, I will add the almost perfect doji and reversal pattern at that key level - I mean it's text book reversal pattern !
Elpidaldo
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@joce-69003, lots of reasons to go long here indeed
Kabux
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Still of that opinion? TLT decline doesn’t seem to stop…
joce-69003
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@Kabux, 3 standard deviations on the Daily and Weekly, completely oversold.... but you're right, it continues to drop and nothing seems to stop it. It is going to reach the 110 108 - if it goes through that resistance then god have mercy.....
I thought we were witnessing a bit of a slow down in the drop last week with possible Doji formations that eventually did not developed fully. I took long positions and I think I am going to have to hag on to them for a term longer than I had expected. hope you did better than me ! :-)
Elpidaldo
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@Kabux, it's painful, but I'm still expecting a bounce, possibly on Thursday. Same for stocks, a 0.5 rate hike is already priced in imo, if the Fed is not too aggressive in its statement and pick the right words, we should get a decent bounce. If you see stocks bouncing big and TLT still declining, we'll know which one we should trust. I agree with @joce-69003 on the standard deviations. And monthly chart sitting on 200ma, and weekly TD sequential 9.