MUB Muni Bonds Daily Chart Oversold Potential Positive Divergence Set Up Long Term Negativity

The red lines show the negative divergence smack down. The ECB's LTRO1 program began on 12/21/11 right where the launch move occurs. The pink ascending triangle targeted 110 but price did not stop there. Price is now testing the 50-day MA as support and making a decision currently. Price has not made a lower low from a few days priior but if price will drop a wee bit more and make a lower low, the uber low MACD histogram positive divergence, as well as stochastics and RSI will bunce price back upwards.

Note the red lines for the MACD line and money flow, however, that are announcing loud and clear that they want to see lower prices in the future after a bounce occurs. Price may bounce back up and test the 50-day MA from the underside moving forward, then likely head lower over time to meet with its destiny at testing the 200-day MA.

The RSI has not been oversold in a long time, so price can meander south all year long from here, same with money flow. The 110.0-110.5 zone is an important S/R test area for price moving forward, above and bulls are happy, below and bears are happy. Projection is a slow sideways move with a downward bias for the weeks and months ahead. 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.