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Technical Focus: Watching Shares of BlackRock Core Bond Trust (BHK)

13 September 2017

The Rank Correlation Index (RCI) is based on an analysis algorithm by Charles Spearman. Traders may use these levels to help identify stock price reversals. Traders may be taking note of this level as a possible buy signal. Investors may be watching other technical indicators such as the Williams Percent Range or Williams %R.

BlackRock Maryland Municipal Bond Trust (BZM) now has a 50-day Moving Average of 14.57, the 200-day Moving Average is 14.54, and the 7-day is noted at 14.28. The Average True Range is an investor tool used to measure stock volatility. The RSI was originally created by J. Welles Wilder which was introduced in his 1978 book "New Concepts in Technical Trading Systems". The general interpretation of the ATR is the higher the ATR value, the higher the volatility. The Williams Percent Range or Williams %R is a technical indicator that was developed to measure overbought and oversold market conditions. The Trust may invest up to 20% of its total assets in municipal bonds that are rated, at the time of investment, Ba/BB or B by Moody's Investors Service (Moody's), Standard & Poor's (S&P) or Fitch Ratings (Fitch), or that are unrated but judged to be of comparable quality by BlackRock. In general, if the indicator goes above -20, the stock may be considered overbought. Alternately, if the indicator goes under -80, this may signal that the stock is oversold. Moving averages are considered to be lagging indicators meaning that they confirm trends.

Another technical indicator that might serve as a powerful resource for measuring trend strength is the Average Directional Index or ADX. Many traders will use the ADX alongside other indicators in order to help spot proper trading entry/exit points. The 14-day ADX presently sits at 16.85. A value of 25-50 would indicate a strong trend. A value of 50-75 would indicate a very strong trend, and a value of 75-100 would signify an extremely strong trend. Employing the use of the moving average for technical equity analysis is still highly popular among traders and investors. At the time of writing, the 14-day ADX for BlackRock Core Bond Trust (BHK) is noted at 14.60. Despite the name, CCI can be used on other investment tools such as stocks. Typically, the CCI oscillates above and below a zero line. Many investors will use the CCI in conjunction with other indicators when evaluating a trade. Using the CCI as a leading indicator, technical analysts may use a +100 reading as an overbought signal and a -100 reading as an oversold indicator, suggesting a trend reversal. The value of the investment in Blackrock New York Municipal In decreased from $2,192,000 to $2,029,000 a change of $163,000 quarter to quarter. The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of stock price movements. The RSI operates in a range-bound area with values between 0 and 100. Conducting thorough fundamental research on stocks even after they have broken out may help the investor understand the reason behind the move, and whether it is likely to continue or if it is just a temporary spike. The opposite is the case when the RSI line is heading lower. One of the most popular time frames using RSI is the 14-day. Accern grades analysis of companies ranging from negative 1 to +1, with ranks nearest to 1 is considered more positive. The indicator is computed by using the average losses and gains of a stock over a certain time period. On the flip side, a shorter MA like the 50-day may help with identifying shorter term trading signals.