Tuesday, March 18, 2014

Municipal High Yield Bond Mutual Fund (PRFHX) - Update

In a previous post, dated March 6, 2014, it was pointed out that municipal high yield bond fund PRFHX had broken above a rising resistance line (upper channel line) on a 1-year chart and also appeared to be overbought.  In the chart below, it appears that PRFHX has tested this previous resistance line (upper blue line) and that it may now act as support. Also, overbought conditions, shown by the Relative Strength Index (RSI) on the lower portion of the same graph, have been alleviated a bit.

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

Taking a bigger picture view, the 5-year daily chart below shows that PRFHX still faces longer-term resistance (gently rising red line) going back to the 2010-2011 time frame.  

(click chart to enlarge)
PRFHX : 5 yr | daily | semi-log

Going forward, it will be interesting to see if the new shorter-term support line (upper blue line) will continue to hold and if PRFHX can break above the red resistance line.  We shall see relatively soon as these lines are converging quickly.

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 junkbondrecycling.com in their entirety. The U.S. Securities and Exchange Commission website has guidance on selecting an investment adviser.

Financial Disclosure:
The author/publisher does not own any shares of PRFHX, but does own shares in high yield municipal bond fund ABHYX. 

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