MUB Municipal Bonds Daily Chart Rising Wedge Overbot Negative Divergence

Muni daily chart shows the September top that was previously highlighted for a pull back due to the rising wedge, overbot conditions and negative divergence. Price received a spank down but the 50 day MA support held. In December, price has now drifted upwards to take out the September highs. Note the same negative divergence and spank down conditions exist so price will pull back. The RSI and MACD line have a little bit of short term momo that will need burned off, so some M Top action would be in order as price rolls over again.

The surprising move up over the last month has to be in part or mainly due to money finding a place to hide from the Europe turmoil. As the wicked negative divergence shows, this is no place to hide. The pink ascending triangle already hit the target at this current price. The neon green triangle is in play but do not hold your breath for the 108's. The chart is ugly. Projection is sideways to sideways down from here, potential M Top action moving forward. Highly likely that this is a significant price high that may not be seen again for weeks and months. The analogy of picking up nickels in front of a bulldozer comes to mind. 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.