Friday, January 30, 2015

Corporate High Yield Bond ETF (HYG) Continues Rally Off of Mid-December 2014 Lows

As shown in the chart below, corporate high yield bond ETF, HYG, has continued to move up off of the mid-December 2014 lows after last week's breakout from a pennant continuation pattern.  

In addition, the upper part of the chart indicates that HYG has broken above falling momentum (RSI) resistance.

Click Chart to Enlarge

Similarly, one of the Corporate High Yield MUTFs that we track (NHINX) has continued to move up after breaking above an ascending triangle pattern and momentum resistance as shown below.

Click Chart to Enlarge

Both funds are still within multi-month descending channel patterns, as shown, but are above multi-year rising support lines (see previous posts).

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 positions in several corporate high yield bond mutual funds at the time this article was written

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