HYG Bounces Up Off Support Into Potential Falling Resistance on Daily Chart

HYG has now had a couple positive days this week.  Will it continue to rise?  If so, it will need to move past the falling resistance line shown on the chart below (dashed red line - former support that was just broken).

Often, after a support break, price retraces and tests former support as resistance.

We will have to see what happens. But another consideration is that corporate high yield bond mutual funds (MUTFs) did not share in HYG's enthusiasm today - almost all MUTFs that I track had no gain at all while HYG was up 0.84%. My past experience is that this not a positive sign going forward for HYG.

click chart to enlarge

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Not Investment Advice | Important Disclaimer: 

The content in this article, including the identification and discussion of any specific security (e.g., bond fund), is NOT meant to be and should NOT be construed and/or used as investment advice. This article is for general information and educational purposes only. Please read the Disclaimers  for junkbondrecycling.com in their entirety. The U.S. Securities and Exchange Commission website has guidance on selecting an investment adviser.

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The author/publisher has no position (long or short) in corporate high yield bond funds at the time this article was written. This position may change depending on future price action.

Base Chart Provided Courtesy of StockCharts.com.  Analysis and Annotation by JunkBond Recycling.com (all rights reserved)