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Canadian Corporate Bonds ETF XCB:  Resistance Zone?
 September 28 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 - Ellipse).

We did retest that Major Trendline (now becomes Support) on September
​14 2016 to rebound strongly​ thereafter. The XCB has the same trading
behavior as the US LQD ETF. (See First Chart Below - Blue Line)​

But the most interesting factor is that ​we are now back testing the
.764 Fibonacci Zone (Zone which was tested also in 2015 - See Chart Below) and also near the ​Resistance Trendline ​from an Uptrend Channel that started back since July 11 2016. 
(See chart below - Channel) ​​
​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: Resistance Zone?     $BONDS  #Trading #Canada  #investing  #bonds #xbb  #rates #yield
Daily Chart
​XCB ETF ( iShares Canadian Corporate Bond Index ETF - Candles ) 
20 DMA ( Yellow Line )
​​50 DMA ( Red Line )
200 DMA ( Green Line )
LQD ETF ( ​iShares iBoxx $ Investment Grade Corporate Bond ETF - Blue Line )

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