Bond yields retreated from their highs yesterday for the third consecutive day due to banking problems in a small EU nation. The 10-year yield fell from a high of 2.09% two weeks ago to close at 1.91% yesterday but any downside may be limited by some very important technical levels.
The daily chart of TLT paints the same story as the 10-year yield chart. The market rally to test trendline TL1 yesterday and close just below it. Strong resistance is at $120.7 and above that is trendline TL2 and the 200-day moving average resistance near $123. Any upside is limited and a rally towards those resistance levels will possibly fade soon based on current picture. However, keep in mind that the picture may change at any time.
Disclosure: no relevant position at the time of this post and no plans to initiate any positions within the next 72 hours..
Charting program: Amibroker (Charts created with AmiBroker – advanced charting and technical analysis software. http://www.amibroker.com/”)