HYG Begins 2016 Up Against Potential Short-Term Resistance Within Large Falling Megaphone (weekly chart)

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The weekly chart above shows that HYG is within a large falling megaphone pattern and currently up against a potential steep short-term resistance line (dashed red) within this pattern.  Above this resistance line is another (thin solid red) falling resistance line that is currently below $84/share.

Falling support (solid green lines) appears to be about $75 per share.

Will HYG break past this short-term resistance line, continuing its late December 2015 rally? Or will HYG continue its relative steep descent, possibly down to support around the $75/share?

Time will tell for sure . . .


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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 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)