MUB Muni Bond Fund Daily Chart Rising Wedge Overbot Negative Divergence

While high-yield junk bonds are hit, muni bonds are in a parabolic move higher breaking up and out of the sideways prices during October and early November. MUB is up from 108.35 to 110.45, over 2 points higher, +1.9% in seven weeks. The purple lines show negative divergence that will spank MUB lower in the days ahead but price will come back up again due to the long and strong MACD line. That price high will likely serve as the near-term top with the MACD line turning neggie d. Price should then roll over for a more substantive rest after the strong move higher.

The MUB weekly chart is negatively diverged across all indicators over a one-year time frame, however, there is some near-term juice for a week or two. The expectation is for MUB to stutter sideways in the days and week or two ahead printing a new high or two, but not much higher than current levels, then MUB should roll over to the downside. If you made money on the way up, scale out over the next couple weeks and move on. Do not start a position in MUB. It would be a potential short say in a couple weeks time early January.

The monthly MUB chart is negatively diverged so the expectation is that MUB prints a multi-year top probably in January, maybe February or so, then it would be sideways to sideways lower for months and potentially a year or three ahead. So if you missed the MUB train on the long side on the way up do not chase it now, let it go, there are always plenty of other fish in the ocean. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.