Monday, August 18, 2014

Corporate High Yield Bond Fund (NHINX) Back Above Key Intermediate-Term Support Lines?

As shown in the daily chart below, except for relatively short time periods, NHINX has been above the green support line during the last 2.5 years.  NHINX is now back above this support line and the 35-day exponential moving average (ema).  

The red resistance line shows a recent (mid-July, 2014) support break, which could provide resistance going forward. 

At this time, NHINX is neither oversold nor overbought per the Relative Strength Index (RSI), as shown in the upper part of the chart.

Going forward, in the near term, we will be interested to see if NHINX can stay above the green support line and the 35-day ema, while at the same time avoiding both overbought conditions and the red resistance line.  (Note that while we think ema's are a good analysis tool, we never use them alone to develop investment strategies.)

Click on 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 established position(s) in NHINX and other corporate high yield bond funds on 08/11/2014.

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