Income Funds On Downtrend Channel Breakouts

  • Post category:Stock Trading
  • Reading time:3 mins read
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On November 25, 2022, many income funds continued to form downtrend channel breakout chart patterns. These bullish patterns suggest institutional investors are bottom feeding in income funds as we close out the worst year for fixed income funds in US history.

Eaton Vance Limited Duration Income Fund $EVV

The $EVV stock chart has confirmed a downtrend channel breakout on November 25, 2022. Interestingly, a bullish One White Soldier candlestick pattern (shown in a red square on the chart below) formed on November 15, 2022, right before the stock chart surged higher.

Eaton Vance Limited Duration Income Fund stock chart on November 25 2022 with downtrend channel breakout pattern and positive MACD with rising money flow
Eaton Vance Limited Duration Income Fund stock chart on November 25 2022 with downtrend channel breakout pattern and positive MACD with rising money flow

Invesco Municipal Income Opportunities Trust $OIA

$OIA stock has confirmed a downtrend channel breakout on November 25, 2022, after an explosive move higher that was led off by a Piercing Line candlestick pattern (show in yellow box below). The MACD is incredibly strong and the money flow just went positive.

Invesco Municipal Income Opportunities Trust Fund stock chart on November 25 2022 on downtrend channel breakout with money flow going positive and positive MACD
Invesco Municipal Income Opportunities Trust Fund stock chart on November 25 2022 on downtrend channel breakout with money flow going positive and positive MACD

The fixed income markets have had their worst year in 2022 in the history of bond markets, setting up an opportunity unlike anything in history. Some big institutional investors like Morgan Stanley are moving money into fixed income markets.

As growth in other sectors slows in 2023 from rising interest rates, fixed income markets will be a sweet alternative.

Fixed income is an alternative like it hasn’t been in a while, says Morgan Stanley’s Brian Weinstein

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