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TECHNICALS
US High Yield Corporate Bond ETF HYG: At Technical Crossroads?
July 18 2016 ( From Tradingview, )
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The Situation
As the Chasing Yield Stampede goes on, Market Participants have
considered a come back on the US High Yield Corporate Bond after
the correction at the beginning of 2016.
Looking especially at a Daily chart on the HYG ETF (iShares iBoxx
$ High Yield Corporate Bond ETFiShares), we can observe that we
are now testing the Major resistance trendline that started back since June 24 2015.
(See First Chart Below - Blue Trendline - Ellipse)Interesting to note that the Volume of the HYG ETF have been declining in the process of testing the resistance trendline. (See First Chart Below - Bottom Blue Area)But few of us realize that as the HYG ETF continue to defy gravity as most managers were quite bearish on US rates and corporate bonds since the beginning of the year.. As rates all over the world continue to tumble, US rates remains one the highest quality at the highest rates available with still some good relative liquidity.But looking at a Weekly chart on the HYG ETF, we have a Shooting Star Technical Pattern.
(See Second Chart Below - Ellipse)So this week is a crucial test as we will make the difference between a Top in price or a Major Breakout for the HYG ETF.We will have to monitor carefully in the next few trading sessions: as we can say, HYG ETF is definitively at Technical Crossroads...
US High Yield Corporate Bond ETF HYG: At Technical Crossroads? $BONDS $HYG #Trading #bonds #investing #hyg
DAILY Chart (Candles)
HYG ETF (iShares iBoxx $ High Yield Corporate Bond ETF)
20 DMA ( Yellow Line )
50 DMA ( Red Line )
200 DMA ( Green Line )
Volume ( Bottom Blue Area )
Financialiceberg.com
WEEKLY Chart (Candles)
HYG ETF (iShares iBoxx $ High Yield Corporate Bond ETF)
Volume ( Bottom Blue Area )
Financialiceberg.com