Invesco Taxable Municipal Bond ETF Forecast

Invesco Taxable Municipal Bond ETF downgraded from Buy Candidate to Hold/Accumulate after Tuesday trading session.
(Updated on Jun 25, 2024)

BAB Signals & Forecast

The Invesco Taxable Municipal Bond ETF holds a sell signal from the short-term Moving Average; at the same time, however, there is a buy signal from the long-term average. Since the short-term average is above the long-term average there is a general buy signal in the ETF giving a positive forecast for the stock. On further gains, the ETF will meet resistance from the short-term Moving Average at approximately $26.74. On a fall, the ETF will find some support from the long-term average at approximately $26.42. A break-up through the short-term average will send a buy signal, whereas a breakdown through the long-term average will send a sell signal. Furthermore, there is a buy signal from the 3 month Moving Average Convergence Divergence (MACD). Volume fell during the last trading day despite gaining prices. This causes a divergence between volume and price and it may be an early warning. The ETF should be watched closely. Some negative signals were issued as well, and these may have some influence on the near short-term development. A sell signal was issued from a pivot top point on Friday, June 14, 2024, and so far it has fallen -0.447%. Further fall is indicated until a new bottom pivot has been found. The ETF had a Golden Star Signal on Friday, May 31, 2024 in the long-term chart.

Golden Star Signal is when the short-term moving average, the long-term moving average, and price line meet in a special combination. This combination is very rare and often followed by long and strong gains for the ETF in question.

Support, Risk & Stop-loss for Invesco Taxable Municipal Bond ETF

Invesco Taxable Municipal Bond finds support from accumulated volume at $26.25 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.

In general the ETF tends to have very controlled movements and with good liquidity the risk is considered very low in this stock. During the last day, the ETF moved $0.1000 between high and low, or 0.376%. For the last week the ETF has had daily average volatility of 0.401%.

Our recommended stop-loss: $25.74 (-3.61%) (This ETF has low daily movements and this gives low risk. There is a sell signal from a pivot top found 41 days ago.)

Trading Expectations (BAB) For The Upcoming Trading Day Of Wednesday 26th

For the upcoming trading day on Wednesday, 26th we expect Invesco Taxable Municipal Bond ETF to open at $26.67, and during the day (based on 14 day Average True Range), to move between $26.55 and $26.85, which gives a possible trading interval of +/-$0.148 (+/-0.56%) up or down from last closing price. If Invesco Taxable Municipal Bond ETF takes out the full calculated possible swing range there will be an estimated 1.11% move between the lowest and the highest trading price during the day.

Since the stock is closer to the resistance from accumulated volume at $26.76 (0.22%) than the support at $26.25 (1.69%), our systems don't find the trading risk/reward intra-day attractive and any bets should be held until the stock is closer to the support level.

Is Invesco Taxable Municipal Bond ETF ETF A Buy?

Invesco Taxable Municipal Bond holds several positive signals, but we still don't find these to be enough for a buy candidate. At the current level, it should be considered as a hold candidate (hold or accumulate) in this position whilst awaiting further development. Due to some small weaknesses in the technical picture we have downgraded our analysis conclusion for this ETF since the last evaluation from a Buy to a Hold/Accumulate candidate.

Current score: 0.893 Hold/Accumulate Downgraded

Predicted Opening Price for Invesco Taxable Municipal Bond ETF of Wednesday, June 26, 2024

The predicted opening price is based on yesterday's movements between high, low, and closing price.