High Yield Municipal Bond MUTF (PYMDX) Breaks Above Resistance and Continues Climbing

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As the chart above shows, high yield municipal bond mutual fund PYMDX, typical of many high yield muni funds, has not experienced the problems of its corporate cousins.

Overall, PYMDX appears be climbing within a large rising channel pattern (solid blue lines) that started in September 2013.  After a significant correction through the first half of 2015, PYMDX has been rallying.

We purchased this fund after it broke above the 50-day ema in September 2015.  Since then, PYMDX has broken above a few resistance lines (dotted and dashed blue lines).


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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.

Financial Disclosure:
The author/publisher has a long position in high yield muni bonds 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)