Kimble’s comments about TLT jibe with those of another technician, Deron Wagner of Morpheus Trading Group, on TLT’s double-leveraged bearish equivalent, the ProShares UltraShort 20+ Year Treasury (NYSEArca: TBT).
“TBT looks to be resuming its new uptrend after a three-month break, as yesterday’s strong advance was confirmed by heavier than average volume,” said Wagner. “The bullish surge off the 50-day MA is a buy signal, so we are monitoring $TBT for a low risk pullback entry within the next 3 to 10 days to the rising 10-day MA. The 50-day MA has just flattened out and has yet to turn up, but the 20-day EMA is now above the 50-day AM, so all three averages are in proper order (20>50>200).”
ProShares UltraShort 20+ Year Treasury
ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of TLT.