Crude (WTIC) and Corporate High Yield (HYG) Charts Show Steep Falling Resistance in Place (weekly chart)

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In the above weekly closing price chart, WTIC has bounced off support (green) at about $30 but is still within a steep falling channel (blue).  Crude may have some room to rally based on this chart after it managed to climb back to close above $30 last week.

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The above weekly closing price for HYG shows that long-term weekly support was broken (blue) and that HYG has rallied a bit back to just below possible dual resistance posed by this former support and a steep falling resistance line (dashed red).  A break through and above these lines could be a positive (at least short-term) for high yield bonds.



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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 or crude oil 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)