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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?




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Canadian Corporate Bonds ETF XCB: Critical Support Zone?     $BONDS  #Trading #Canada  #investing  #bonds #xbb
Daily Chart
​XCB ETF ( iShares Canadian Corporate Bond Index ETF ) 
20 DMA ( Yellow Line )
​​50 DMA ( Blue Line )
200 DMA ( Red Line )

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