While investment-grade corporate bonds may be offering compelling value at the moment, near-term traders need to be mindful of LQD’s technical outlook.
“On the chart, LQD broke its 5 year uptrend back in December and is now breaking under its monthly IchoMoku Cloud. LQD also put in a major double top and the next key level is the $111 support from 2013 weakness, while a move below sets up for a longer term measured move down to $99. Monthly RSI has already broken down well below the 2013 level,” adds See It Market.
iShares iBoxx $ Investment Grade Corporate Bond ETF
Tom Lydon’s clients own shares of LQD.