Always consider hidden risks
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 tradingbehavior 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?
Canadian Corporate Bonds ETF XCB: Resistance Zone? $BONDS #Trading #Canada #investing #bonds #xbb #rates #yield
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 )