First Trust CEF Income Opportunity ETF Forecast

Green day on Friday for First Trust CEF Income Opportunity
(Updated on May 17, 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 $20.84 and $20.34. 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 6.57%. 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. Higher liquidity also reduces the general risk.

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 $0.0800 between high and low, or 0.383%. For the last week the ETF has had daily average volatility of 0.419%.

The First Trust CEF Income Opportunity ETF is extremely overbought on RSI14 (84). Normally this may pose a good selling opportunity but since the ETF has broken the trend up, the chance for a major correction due to high RSI is very small as the ETF will find support at the trend broken.

Our recommended stop-loss: $19.90 (-4.93%) (This ETF has low daily movements and this gives low risk. The RSI14 is 84 and this increases the risk substantially. There is a buy signal from a pivot bottom found 23 days ago.)

Trading Expectations (FCEF) For The Upcoming Trading Day Of Monday 20th

For the upcoming trading day on Monday, 20th we expect First Trust CEF Income Opportunity ETF to open at $20.92, and during the day (based on 14 day Average True Range), to move between $20.79 and $21.07, which gives a possible trading interval of +/-$0.141 (+/-0.67%) 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 1.35% move between the lowest and the highest trading price during the day.

With no resistance above and support from accumulated volume @ $20.36, some $0.574 (2.74%) from the current price of $20.93, 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 has broken the horizontal trend up. As the ETF is in great technical shape we, therefore, consider it to be a good choice at these current levels and we are expecting further gains during the next 3 months.

Current score: 5.256 Strong Buy Candidate Unchanged

Predicted Opening Price for First Trust CEF Income Opportunity ETF of Monday, May 20, 2024

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