Wednesday, March 19, 2014

Corporate High Yield Bond Mutual Fund (NHINX) - Update

A previous post on March 7, 2014 indicated that that corporate high yield bond mutual fund (NHINX) was testing support.  Although support identified in the March 7 post was broken after a small decline last week, which alleviated slightly overbought conditions, short and longer-term rising support (as well as overhead falling resistance) appear to still be in play as follows:

The 1-year daily chart below shows that NHINX was testing the 30-day exponential moving average (ema, light blue line), which has acted as support and resistance, as of the end of last week (March 14).  In addition, another reasonably defined support line (dark blue) was also tested.  After 3-days of trading this week, NHINX is positioned slightly above both of these support lines. 

(click chart to enlarge)
NHINX: 1-yr | daily | semi-log

Looking at the bigger picture in the 5-year (truncated), weekly chart below, it can be seen that  longer-term rising support (light blue line) was also tested at the end of last week, and that currently, NHINX is slightly above this line also.

(click chart to enlarge)
NHINX: 5-yr (truncated) | weekly | semi-log

Going forward, it will be interesting to see if the falling resistance (red line) or the rising support (blue lines) win out as these support and resistance lines are rapidly converging.  Consequently, NHINX must either break below support or above resistance, possibly leading to much lower or higher prices, if this move triggers significant selling or buying by investors. 

Not Investment Advice | Important Disclaimer: 
The content in this article, including the identification and discussion of any specific security (e.g., bond fund), is NOT meant to be and should NOT be construed and/or used as investment advice. This article is for general information and educational purposes only. Please read the Disclaimers  for in their entirety. The U.S. Securities and Exchange Commission website has guidance on selecting an investment adviser.

Financial Disclosure:
The author/publisher owns shares of NHINX and other corporate high yield bond mutual funds. 

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