Tuesday, September 9, 2014

Another Early Sign of Weakness (NHINX)? - Corporate High Yield Bond Funds

Consistent with our previous post, the daily chart below shows that corporate high-yield bond fund NHINX (Neuberger-Berman) was turned back at former long-term support line, now turned resistance line, R1, after briefly rallying off support line S1 in August 2014 following the July 2014 sell-off.

After encountering R1, the current sell-off has so far resulted in a break of the 35-day exponential moving average (ema), which has generally provided intermediate-term support over the years, and apparent support line S2.

Going forward, we will be interested to see if S1 is tested again and if so, will this support level hold?  If not, how far will prices drop?


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 has no positions in NHINX or any other corporate high yield bond funds at the time this article was written.

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

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