The iShares Barclays 20+ Yr Treas.Bond (ETF) (NASDAQ:TLT) has broken out to new all-time highs in June. However, the ETFs chart indicates the run-up may be on a breather for the time being.
After forming a double top at $134 in early 2015 and early 2016, TLT broke through the $134 level with authority earlier this month and surged to new all-time highs.
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The ETF climbed as high as $137.56 in Thursday morning trading before pulling back to the mid-$136 range.
The bad news for TLT bulls is that the ETF may be forming a shooting start technical formation on Thursday. A shooting star is a candlestick formation that forms when a stock or ETF advances well above its opening price throughout the trading day only to pull back and close below the opening price. This formation typically marks near-term market tops and reversals.
If the TLTs current price holds, the ETF will form a shooting start candle on Thursday.
The good news for TLT bulls is that the ETFs former resistance at the $134 level should now provide a certain degree of support in the event of a pullback. If the $134 level holds, its likely that the bull run will continue at some point in coming weeks.
Disclosure: The author holds no position in the stocks mentioned.
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