Unloved ETFs tracking U.S. Treasury bonds are set up for a rally if investors get caught leaning the wrong way.

Investors haven’t been this bearish on Treasuries for years after the recent jump in yields that has pulled down bond prices.

However, Treasury ETFs could find support at a key technical level.

For example, iShares 3-7 Year Treasury Bond Fund (NYSEArca: IEI) recorded a key-day-reversal on Friday, says Investors Intelligence technical analyst Tarquin Coe.

“The price broke beneath the prior day’s low but ended up above the previous session’s high. Adding weight to the signal is potential two-year support across the $120 [a share]region,” he wrote in a newsletter Monday. “Longs are worth considering, using last week’s low of $119.33 as a stop-loss. If support holds, then a move is possible back up to the top of the range at $124.”

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