Let's notice that the iShares 20+ Year Treasury Bond ETF (NYSE: TLT) is testing the 102.00-101.80 area, which represents the lower channel support line off of the April low (87.30), as well as the mid-August upside breakaway gap area.

From a technical perspective the TLTs should hold in and around current levels (101.90/80), with downside overshoot into the 100.90/60 area prior to my expectation of a resumption of TLT strength that revisits 106 to 108 thereafter.

By Mike Paulenoff

Mike Paulenoff is author of MPTrader.com (www.mptrader.com), a real-time diary of his technical analysis and trading alerts on ETFs covering metals, energy, equity indices, currencies, Treasuries, and specific industries and international regions.

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