(If you’d like to learn more about this ETF, just click the link here<\/strong><\/a>.)<\/p>\n My technical analysis of TLT suggests that this tight trading range might soon come to an end.<\/p>\n This means we will see an explosive breakout in bonds, which will also mean declining bond yields.<\/p>\n Let’s look at a chart of TLT together so you can see what I mean…<\/p>\n <\/p>\n The key feature of this price chart is the pattern I’ve drawn using the blue trendlines.<\/p>\n This kind of chart setup belongs to a family of patterns known as consolidations<\/em>.<\/p>\n Consolidations occur when there’s a relatively equal balance between buyers and sellers in the market. This is why this kind of pattern trades sideways in a range.<\/p>\n <\/p>\n Free Trading Resources<\/strong><\/p>\n Have you checked out Jeff’s free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career \u2013 at zero cost to you. Just click here<\/a> to check it out.<\/p>\n<\/p><\/div>\n<\/div>\n <\/p>\n Although they can go on for quite some time, eventually consolidations must break out in one direction or the other.<\/p>\n In fact, the longer a consolidation takes to resolve, the fiercer the ensuing breakout.<\/p>\n Think of it like steam building inside a kettle. Eventually, the water inside the kettle will reach a boil. When that happens, all that trapped steam must be released.<\/p>\n It’s the same with markets.<\/p>\n That’s what makes the current pattern in TLT so exciting. TLT has been stuck in this consolidating pattern since December 2022.<\/p>\n That’s quite a long time for the steam to build.<\/p>\n And because the price action leading into the consolidating pattern was bullish, the odds favour an upside breakout.<\/p>\n If prices can break out of the upper blue trendline, then I’ll be looking for a move higher.<\/p>\n My initial target in TLT coincides with the August 2022 high of $120.<\/p>\n Happy trading,<\/p>\n Imre Gams <\/p>\n![\"Image\"](\"https:\/\/cdn.jeffclarktrader.com\/JMU\/images\/202304\/20230424-JMU-01_mrt637.png\")
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Analyst, Market Minute<\/em><\/p>\nREADER MAILBAG<\/h2>\n<\/div>\n