YE 2016 – High Yield Outlook

(Harvest) High Yield bonds have experienced a strong reversal in price, accompanied by a momentum swing known as a Bullish Divergence. This divergence between price and momentum occurred in early 2016, illustrated by the Roman Numerals ‘I, II & III’ representing the RSI bottom at 20. Prices continued lower as a stabilization in the Relative Strength Index indicated the reversal to follow.

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