Pssst! Come Check Out My Junk

• Posted by Greg Harmon
• on June 5th, 2014

I’ve got a full package to show you. Complete with surges higher and then pullbacks, placed among rounded bottoms. Are you intrigued? Then take a look.

My chart of the Junk Bond ETF, $JNK, shows a series of repeated patterns. There are a series of higher highs rolling over into a series of higher lows in rounded bottoms, The 20 day SMA has been a rough support area since March and the last 3 days are showing that it may be doing so again for the 4th time. With a RSI that is turning back higher it may be ready for the 4th move higher targeting the 41.65 area. Using 41.25 as a stop this could be a nice 1% return for a 2 to 3 week stay. Not bad in a market that is churning sideways and money market rates at zero.

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