September 25, 2006

9/25/2006

I finally have an update for the TLT trade/analyis. The conclusion first: take partial profits. Which in my case means get out of the position on Tradestation (short-term horizon) but not on Schwab (longer-term).
Here’s the daily chart:


(Click twice on the chart to enlarge)

It looks like an exhaustion gap. The RSI is at 80. And finally 90 is previous resistance dating back to 02/14/2006 (shown in the weekly).

Longer term, as you can see in the following chart, the potential for further gains is still there, with the RSI still rising and not yet overbought. If the 90-92 resistance band is overcome, further upside to 96 is possible.

Here’s the weekly chart: