Rally Ahead for Ishares Lehman 20yr (NYSE: TLT)? Asks Market Timer Frank Kollar

June 4, 2008 (FinancialWire) (By Frank Kollar)

Shares of the ETF Ishares Lehman 20 Year (NYSE: TLT) rallied on Tuesday June 3, after breaking strong support levels on May 29. Are we headed higher from here?

The close below support in May was technically a bearish signal forecasting further declines in coming weeks. Though we have rallied so far in June, the larger picture needs to be taken into consideration, not just the last few days.

TLT broke below the 50% retracement support on May 29, at $90.05, for the entire year long rally in bonds. This break of support forecasts that prices will reach at least the Fib 61.8% retracement level at $88.20.

TLT also had a double top in January and March of this year. Looking back to November of 2007, it may also be a bearish head and shoulders pattern.

The rally should run out of steam soon.

The Fibtimer.com (http://www.fibtimer.com) ETF Timing Strategy holds a position in TLT.

Kollar’s research has shown that the financial markets are in tradable trends approximately 80 percent of the time. FibTimer strategies define trends and trade them in both advancing and declining markets. Caring nothing about what newscasters say or what the latest economic indicator predicts, trends are where the profits are, and that is where FibTimer is.

Kollar is editor and chief analyst at FibTimer.com (http://www.fibtimer.com) which offers market timing strategies for S&P and Nasdaq index fund traders, as well as bond, gold, small cap, sector, ETF and stock trading strategies.