Monday, March 17, 2014

Emerging Market High Yield Bond Mutual Fund (TGEIX) - Update

This post is an update on the March 3, 2014 article indicating that TGEIX was facing falling resistance and experiencing negative price action at the same time.  The 1-year chart below shows that TGEIX remains below the falling red resistance line, but is still above the rising blue support line. TGEIX has been in a predominantly sideways pattern since around July 2013.

TGEIX - 1-year | daily | semi-log
(click chart to enlarge)

Taking a longer-term view in the 5-year daily chart below, it can be seen that the rising blue support line (also shown in the 1-year graph above) extends back to before 2010.  The red resistance line is relatively shorter-term and somewhat coincides with the 200-day simple moving average (sma, orange line).

It is inevitable that TGEIX will either break above the red or below the blue line as these resistance and support lines are converging, apparently forming a symmetrical triangle pattern.  It will be interesting too see which move eventually occurs.

TGEIX - 5-year | daily | semi-log
(click chart to enlarge)

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 sold all shares of TGEIX on March 4, 2014.

No comments:

Post a Comment