Saturday, August 23, 2014

Corporate High Yield Bond Funds (Mutual) End the Week at Resistance

Three of the corporate high yield bond mutual funds we track, including two very large asset funds BHYSX (Blackrock) and VWEHX (Vanguard), as well as NHINX (Neuberger-Berman), have ended the week against resistance lines labeled R1 in each of the daily charts below

While Friday's trading generated small losses at the end of the day for corporate high yield bond ETFs (e.g., HYG - previous post), there was no price change in these mutual funds.

As with HYG, the overbought/oversold condition of these mutual funds remains relatively neutral based the the RSI (Relative Strength Indicator, upper part of chart). 

Going forward we will be interested to see if these mutual funds can continue their uptrend off support line S1, which may or may not involve a break above resistance line R1 (depending on the slope of R1 for each fund).  The lack of negative price action in these funds at the close of the week on Friday could be a positive sign; however, we shall see!

(Please note the charts for these funds have been simplified from the previous posts - the number of lines shown have been reduced, adjusted slightly, and relabeled for clarity without changing the interpretation.)

(Click Charts 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 has position(s) in corporate high yield bond funds.

Base Chart Provided Courtesy of  Analysis and Annotation by (All Rights Reserved)

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