Sunday, August 3, 2014

Emerging Market High Yield Fund (TGEIX) Dives Through Multiple Support Lines

TGEIX was turned back at resistance line R1 at overbought conditions (per RSI) in mid-June 2014 and has largely moved sideways since then, unable to break up and through this resistance line.

Now, per the 5-year daily chart below, TGEIX has suddenly broken down through several lines of support (i.e., S2, S3, S4).  In our opinion, this is not a positive sign for this Emerging Market High Yield Bond Fund, and perhaps not for Emerging Market High Yield Bonds in general.  

The next level (or zone) of support may be at or near S5, but of course there is no guarantee the price decline will stop that soon. We are now watching from the sidelines to see where the price action takes this fund from here. 

(Click Chart to Enlarge)

TGEIX Chart: 5yr | daily | 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 has no position in TGEIX or in any other Emerging Market High Yield Bond Funds.

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

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