First Trust CEF Income Opportunity ETF Forecast

Stronger technical forecast for First Trust CEF Income Opportunity ETF price after Thursday trading.
(Updated on May 09, 2024)

FCEF Signals & Forecast

Mostly positive signals in the chart today. The First Trust CEF Income Opportunity ETF holds buy signals from both short and long-term Moving Averages giving a positive forecast for the stock. Also, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average. On corrections down, there will be some support from the lines at $20.50 and $20.28. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Tuesday, April 16, 2024, and so far it has risen 5.70%. Further rise is indicated until a new top pivot has been found. Furthermore, there is a buy signal from the 3 month Moving Average Convergence Divergence (MACD). First Trust CEF Income Opportunity has increased volume and follows the last lift in the price. This is considered to be a technical positive sign as volume should follow the price-formation. The very low volume increases the risk and reduces the other technical signals issued.

Support, Risk & Stop-loss for First Trust CEF Income Opportunity ETF

First Trust CEF Income Opportunity finds support from accumulated volume at $20.36 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 $0.0350 between high and low, or 0.169%. For the last week the ETF has had daily average volatility of 0.375%.

The First Trust CEF Income Opportunity ETF is overbought on RSI14 and lies in the upper part of the trend. Normally this may pose a good selling opportunity for the short-term trader, but some ETFS may go long and hard while being overbought. Regardless, the high RSI together with the trend position increases the risk and higher daily movements (volatility) should be expected. A correction down in the nearby future seems very likely and it is of great importance that the ETF manages to break the trend before that occurs. Since the First Trust CEF Income Opportunity has been rising for 7 days in a row, the risk over the next couple of days has increased. We don't expect a major reaction as the ETF is in very good shape technically, and therefore hold a positive evaluation despite the very short term risk.

Our recommended stop-loss: $19.73 (-4.94%) (This ETF has low daily movements and this gives low risk. The RSI14 is 86 and this increases the risk substantially. There is a buy signal from a pivot bottom found 17 days ago.)

Trading Expectations (FCEF) For The Upcoming Trading Day Of Friday 10th

For the upcoming trading day on Friday, 10th we expect First Trust CEF Income Opportunity ETF to open at $20.75, and during the day (based on 14 day Average True Range), to move between $20.60 and $20.92, which gives a possible trading interval of +/-$0.158 (+/-0.76%) up or down from last closing price. If First Trust CEF Income Opportunity ETF takes out the full calculated possible swing range there will be an estimated 1.52% move between the lowest and the highest trading price during the day.

With no resistance above and support from accumulated volume @ $20.36, some $0.404 (1.95%) from the current price of $20.76, our system finds the risk reward attractive.

Is First Trust CEF Income Opportunity ETF ETF A Buy?

First Trust CEF Income Opportunity holds several positive signals and is considered to be a good choice at current levels. We expect the First Trust CEF Income Opportunity ETF to perform great in the short-term period. We have upgraded our analysis conclusion for this ETF since the last evaluation from a Buy to a Strong Buy candidate.

Current score: 5.068 Strong Buy Candidate Upgraded

Predicted Opening Price for First Trust CEF Income Opportunity ETF of Friday, May 10, 2024

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