Monday, June 16, 2014

Emerging Market High Yield Fund (TGEIX) Hits Resistance and Tests Support

The previous post (5/25/2014) on TGEIX is here.  Note as resistance lines are taken out and tested successfully as support, they are relabeled as support lines on subsequent charts, including the one in this post.

As shown in the chart below, a little over a week ago, TGEIX was turned back at resistance line R1 at overbought conditions (per RSI) and has retreated again to support line S3, which is currently being tested.

(Click Chart to Expand)

TGEIX Chart:  5 yr | Daily | Semi-log | Unadjusted Prices

Going forward we are interested to see if support line S3 holds as overbought conditions have been alleviated per RSI. In addition, line S5 shown below (omitted from the chart above because it has not yet been tested as support until now) also appears quite relevant at this time.  

Our view is that it is important that these support lines (S3 and S5) are rising (positive slope) and continue to hold to help maintain TGEIX's upward trend. In any case, we shall see what happens from here and act appropriately.

(Click Chart to Expand)

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 established a position in TGEIX on March 26, 2014.

Base Chart Provided Courtesy of  Analysis and Annotation by JunkBond (all rights reserved)

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