Tuesday, August 26, 2014

Municipal High Yield Bond Funds Testing Resistance at Overbought Conditions

The following charts show that municipal high yield bond funds ABHYX (American Century) and PRFHX (T Rowe Price) are testing resistance after rallies off support.

The RSI (Relative Strength Index - upper part of chart) indicates these funds are into overbought territory.

Going forward we will be interested to see the price action at these resistance lines, particularly given the overbought conditions of these funds.

(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 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 owns shares of municipal high yield bond mutual fund ABHYX.

Base Chart Provided Courtesy of StockCharts.com.  Analysis and Annotation by JunkBond Recycling.com (all rights reserved)

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