FINANCIAL ICEBERG
Always consider hidden risks
 TECHNICALS
Canadian Bonds ETF XBB: Chasing Yield?
 July 4 2016 ( TradingView  )
If you would like to receive our free daily markets updates, please Sign-Up



The Situation

The Canadian Universe Bond ETF - XBB 
​( iShares Canadian Universe Bond Index ETF ) broke on May 9 2016
​a ​huge
​daily ​wedge pattern that started back since February 2 2015.
​ ​​(See First Chart Below- Red Trendline - Ellipse).

Since then, we keep making higher highs and higher lows, ​anyway
​a good technical set up that will keep volatility high as
shown by ​the ​​first ​​chart ​below.

But the most interesting factor is that ​we are now testing the Minor Resistance from a new Trendline that is so critical for Bears to hold. ​(See chart below - Blue Trendline - Ellipse)
​All that within a rising trading volume. ​(See chart below - Bottom Blue Area Chart - Ellipse)

Central Banks almost on a panic mode as Government Bond rates are collapsing worldwide as uncertainties arising from the economy and the political situation (Brexit, China,...) That should keep investors chasing yield as they never did before into a new bond bubble zone...

​​
But the most interesting technical factor is that we tested for a fourth time the Monthly Resistance of a previous Major Falling Wedge Pattern (that started back since November 2015) for the ​XBB ETF but failed to break it yet. It could become a significant change for the Canadian Bond Market indeed if broken. ​​
​(See Second Chart Below - Thick Red Trendline- Ellipse)​.



​​












Canadian Bonds ETF XBB: Chasing Yield?    $BONDS  #Trading #Canada  #investing  #bonds #xbb
Daily Chart
​XBB ETF (  iShares Canadian Universe Bond Index ETF  ) 
20 DMA ( Yellow Line )
​​50 DMA ( Blue Line )
200 DMA ( Red Line )

Financialiceberg.com
Monthlly Chart
​XBB ETF (  iShares Canadian Universe Bond Index ETF  ) 

Financialiceberg.com