Friday, September 12, 2014

Emerging Market High Yield Fund (TGEIX) - Brief Rally Turned Back At Resistance


In our previous posts on August 13, 2014 and August 26, 2014, it was illustrated that TGEIX had found dual support lines with associated positive price reaction at support lines S1 and S2 and that TGEIX then rallied as it moved above and tested support line S3.  

Soon after the last two posts, as shown in the daily chart below, TGEIX was turned back at resistance line R2 and then proceeded to fall through previous support line S3.  

In our opinion, the failure of TGEIX to retest resistance line R1, have its advance sharply halted at R2, and not hold at S3 may not be a positive sign in terms of future price trend for TGEIX.





(Click Chart to Enlarge)



Going forward we will be interested to see if TGEIX will continue to decline and again successfully test support lines S1 and/or S2.  If these support lines are tested and do not hold, will support failure result in significantly lower 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 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 position in TGEIX at the time of this article.


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

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