SPDR Bloomberg Barclays High Yield Bond ETF (JNK)
click to enlarge charts
Key Levels (1 to 3 weeks)
Pivot (key support): 107.70
Resistances: 109.46, 111.00 & 112.78
Next support: 105.55
Directional Bias (1 to 3 weeks)
Bullish bias in any dips above 107.70 for JNK and a break above 109.46 reinforces another potential upleg sequence to target 111.00 follow by the next significant medium-term resistance at 112.78.
However, a break with a daily close below 107.70 negates the bearish tone for a corrective slide to retest the major range support at 105.55.
- Since 30 Apr 2019, the price action has evolved into a 5-month “Cup & Handle” range configuration after a prior multi-month uptrend from 28 Dec 2018 low of 98.77. The “Cup & Handle” range configuration tends to indicate a potential bullish consolidation phase after a prior uptrend and a break above the “Cup & Handle” range resistance triggers the start of another up-trending phase.
- The “Cup & Handle” range resistance stands at 109.46.
- Momentum remains positive. The daily RSI oscillator has staged a leading bullish breakout from a significant corresponding descending resistance (in parallel with the Cup & Handle resistance). In addition, the daily RSI oscillator has not reached an extreme overbought level.
- The 112.78 medium-term resistance is defined by the former major range support from May 2012/Dec 2014, the exit target projection of the “Cup & Handle” and the 0.764 Fibonacci expansion of the prior uptrend from 28 Dec 2018 low to 30 Apr 2019 high projected from 03 Jun 2019 low.
Charts are from eSignal
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.