Friday, August 22, 2014

Largest Corporate High Yield Bond ETF (HYG) Faces Long-Term Resistance?

iShares iBoxx $ High Yield Corporate Bond ETF (HYG) is the largest U,S. corporate high yield bond exchange traded fund (ETF) with total assets exceeding $12.64 million at the time this article was written.

Below is a daily chart (unadjusted prices) for HYG with support and resistance lines.  It appears HYG is currently re-testing resistance line R1 after rebounding off support line S1 in early August.  HYG is relatively neutral in terms of oversold/overbought conditions per the RSI (Relative Strength Index - upper part of chart).

Per support line S1, the long-term trend for HYG is still up.  Many investors may be surprised if HYG continues its long-term advance within the bounds of support line S1 and resistance line R2.


(Click 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 junkbondrecycling.com in their entirety. The U.S. Securities and Exchange Commission website has guidance on selecting an investment adviser.

Financial Disclosure:
The author/publisher does not hold positions in HYG, but has positions in several corporate high yield bond mutual funds.

Base Chart Provided Courtesy of StockCharts.com.  Analysis and Annotation by JunkBondRecycling.com (All Rights Reserved)

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