Friday, July 4, 2014

Municipal High Yield Bond Fund (ABHYX) Testing Long-Term Support and 100-day EMA at Oversold Conditions

The following 10-year daily chart shows that municipal high yield bond fund ABHYX (American Century) is testing support line S4 and the 100-day ema (exponential moving average), and that ABHYX is currently in an oversold condition based on the RSI (Relative Strength Index just below 30 - upper part of chart).    

Note that support lines (i.e., S2 and S3) identified in our previous post on June 22, 2014 were broken and consequently ABHYX's price has fallen further (from $9.20 to $9.11 per share).

(Click Chart to Enlarge)

ABHYX Chart: 10yr | daily | semi-log | unadjusted Prices

Going forward, based on the above chart, we will be interested to see if support line S4 and the 100-day ema will hold or if further price declines will occur. Historically, it appears that the 100-day ema and associated support lines have been important lines indicators for buying and selling ABHYX. Twice in the last 5-years, when ABHYX's price has dropped below the 100-day ema, price declines down to support line S6 (above chart), which is currently at about $8.80, have occurred.

From another perspective, the 10-year weekly chart below shows that ABHYX is also testing support lines S1 and S2 and is also at the 100-week ema. Thus, this weekly chart is generally consistent with the daily chart.

(Click Chart to Enlarge)

ABHYX Chart: 10yr | weekly | semi-log | unadjusted Prices

Lastly, the 10-year monthly chart below also shows that ABHYX is at or near rising support.

(Click Chart to Enlarge)

ABHYX Chart: 10yr | monthly | semi-log | unadjusted Prices

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 municipal high yield bond mutual fund ABHYX.

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

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