HYG - Falling Megaphone Support Below $75/Share on Weekly Chart

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As the weekly chart above shows, for corporate high yield bond ETF HYG, intermediate-term pattern changes started in about July 2014.  A series of four rising wedges gave way to a falling megaphone (or expanding wedge) pattern - in fact it appears that one megaphone pattern is nested within another.  

In addition, the current "Santa Claus" rally might encounter shorter-term falling resistance by the end of this week.

The support line for the larger falling megaphone is below $75/share if this pattern plays out. 

 
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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)