Thursday, July 16, 2015

HYG - Short and Long-Term Daily Charts Show Positive Price Action?

The short and longer-term daily closing price charts for HYG below both appear to show positive price action as indicated.

The longer-term chart shows that HYG is still within a large rising channel and has recently moved up off of two support lines, one forming the bottom of this channel.

Click Chart to Enlarge

The shorter-term chart shows various chart patterns, the latest of which is a steep falling channel that HYG has apparently just broken up out of.  Also, the upper-part of this chart shows a positive MACD cross-over.

Click Chart to Enlarge

Our previous post on HYG questioned whether HYG would test a weekly support line - it is possible that this will not occur.

Using this analysis and other technical lines of evidence, today I entered a significant long position in a high yield corporate bond mutual fund.  I will be using various support lines, similar to those shown here, as sell triggers to protect this initial investment if the decision was incorrect.

Again, as clearly indicated below and elsewhere on this website in more detail, this is not investment advice - nothing in this post should be construed as advice or a recommendation to buy (or sell) corporate high yield bond funds.  This is simply an example of how I use technical analysis with a buy and protect strategy to invest.  I could lose money on an investment in corporate high yield bonds as could anyone else who uses this strategy.

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 no position in corporate high yield bond funds at the time this article was written. This position may change depending on future price action.

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