TBT and 10-Year Treasury YIELD Remain Under Pressure
|What now for the ProShares UltraShort 20+ Year Treasury (TBT)?
Well, with 10-year YIELD trading at 2.19%, a new low for the decline off of the March 14 pre-FOMC rate hike high at 2.63%, by definition, TBT also is under pressure, also making new corrective lows at 36.78 so far.
Let's notice on the TBT chart, that if we view all of the action off of the March 13 high at 42.28 as a corrective down-channel, and if we view all of the action since March 31 as an "inside" minor down-channel, then a press towards a test of both lower channel boundaries point to targets of 36.60, which if violated and sustained, then will point lower to 36.00-35.80.
Right now, continued sluggish economic data, the absence of a timetable for tax cuts and infrastructure spending, and the persistent heightened geopolitical tensions (flight to safety) argue for TBT (YIELD) weakness into the lower channel target zone of 36.00-35.80 prior to my expectation of a major upside technical reversal.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.