HYG finds buyers again around 84.80
iShares iBoxx $ High Yield Corporate Bond (HYG) Technical Analysis Report for Aug 04, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, HYG finished Tuesday at 85.04 edging lower $0.03 (-0.04%). Trading up to $0.17 lower after the open, iShares iBoxx managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (HYG as at Aug 04, 2020):
Tuesday's trading range has been $0.27 (0.32%), that's below the last trading month's daily average range of $0.45. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for HYG. Prices continued to consolidate within a tight trading range between 84.70 and 85.40 where it has been caught now for the whole last trading week.
After having been unable to move lower than 84.85 in the prior session, the ETF found buyers again around the same price level today at 84.80.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 85.40 where further buy stops could get activated. Selling might accelerate should prices move below the close-by swing low at 84.50 where further sell stops could get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous High" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for iShares iBoxx. Out of 525 times, HYG closed higher 53.90% of the time on the next trading day after the market condition occurred.