Always consider hidden risks
Canadian Corporate Bonds ETF XCB: Critical Support Zone?
September 15 2016 ( TradingView )
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The Canadian Corporate Bond ETF - XCB
(iShares Canadian Corporate Bond Index ETF) was trading within a huge
falling wedge pattern that started back since February 2015. It did finally
breakout on July 5 2016. (See First Chart Below- Thick Red Trendline).
Since March 2 2016, we keep making higher lows and higher highs
trading pattern, and was most of the time above the 50 DMA (Day Moving
Average). (See First Chart Below - Red Line).All that changed suddenly on September 13 when we made a new low compare to the previous low on July 25 and broke the Support Trendline from a Daily Channel.But the most interesting factor is that we are now back testing the Major Support Trendline that started back since February 2015 from that huge falling wedge pattern that is so critical for Bulls to hold. (See chart below - Red Trend Line - Ellipse) All that within a falling trading volume. (See chart below - Bottom Blue Area Chart - Ellipse)
Chasing yield have become a big commitment from investors on the bond side as they kept piling into Corporate Bonds desperately seeking yield; how more risks they have to bear for a tiny return?
Simply stated, we are again into another wave of yield chasing as investors takes more and more risks to achieve less and less financial return. 2007 Sound familiar?
Canadian Corporate Bonds ETF XCB: Critical Support Zone? $BONDS #Trading #Canada #investing #bonds #xbb
XCB ETF ( iShares Canadian Corporate Bond Index ETF )
20 DMA ( Yellow Line )
50 DMA ( Blue Line )
200 DMA ( Red Line )