TLT in bullish mode

First of all, we can see that TLT - the ishares 20+ year treasury bond ETF – followed a nice uptrend throughout May. Then, this popular ETF lost its momentum and it has formed a triangle pattern – see the blue lines. Triangle patterns, in theory at least, are normally continuation patterns, which means that we should expect price to break up and above the declining upper triangle side.

It’s important to note at this point that price never fell below its 10-day exponential moving average, which keeps moving up and above the ascending 20- and 50-day exponential moving averages.

This hopefully temporary loss of momentum has been depicted in MACD, which has just moved below its signal line.

Likewise, TLT’s Relative Strength is currently moving horizontally and along its 20-day exponential moving average.

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