After mounting a powerful rebound off the 2018 Nov/Dec lows the LQD(iShares iBoxx Investment Grade Corporate Bond ETF) ran into a wall near the $116.50 area. The LQD has spent the last six weeks tracing out a narrow consolidation just below this zone. Today this bull flag pattern is giving way as the LQD heads for its best close since April 17, 2018. A fresh rally leg could have legs. The LQD can cover a great deal of ground before returning to overbought territory.
The LQD explained: The iShares iBoxx $ Investment Grade Corporate Bond ETF seeks to track the investment results of an index composed of U.S. dollar-denominated, investment grade corporate bonds.
More here from BlackRock: www.ishares.com
Hat tip Charlie Bilello