LQD Corporate Bond Fund Daily Chart

A look at corporate bonds shows how price is trying to stay inside the long term channel with all its might. The falling red wedge and positive divergence with RSI, MACD histogram and stochastics helped bounce price off the bottom rail of the channel. Note the 20 MA wanting to cross down thru the 50 MA which is bearish. Price has very much a sideways feel to it and the blue sideways symmetrical triangle highlights this action. Note how price can play out in the 111.3 to 112.0 range as it forms the triangle apex, but price will need to make a decision one way or the other.

Note the purple lines showing the negative divergence that called the top. Projection is for the 20 MA to stab thru the 50 MA, price to fall out of the bottom side of the blue triangle, and for price to collapse thru the lower rail of the channel, all bearish, with a 110.5 initial target. Interestingly, comparing MUB, LQD, HYG and JNK, LQD has held up the best, then MUB, then HYG and JNK have already performed sizable down moves.This information is for educational and entertainment purposes only. Do not trade based on this information. Consult your financial advisor before making any investment decision.