First Trust STOXX European Select ETF Forecast

First Trust STOXX European Select ETF downgraded to Hold/Accumulate
(Updated on May 09, 2024)

FDD Signals & Forecast

The First Trust STOXX European Select 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 $12.18 and $11.89. 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 7.32%. 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 STOXX European Select 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 STOXX European Select ETF

On the downside, the ETF finds support just below today's level from accumulated volume at $11.63 and $11.41. There is a natural risk involved when a ETF is testing a support level, since if this is broken, the ETF then may fall to the next support level. In this case, First Trust STOXX European Select finds support just below today's level at $11.63. If this is broken, then the next support from accumulated volume will be at $11.41 and $11.27.

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 $0.0600 between high and low, or 0.486%. For the last week the ETF has had daily average volatility of 0.489%.

Our recommended stop-loss: $11.76 (-5.06%) (This ETF has low daily movements and this gives low risk. There is a buy signal from a pivot bottom found 17 days ago.)

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

For the upcoming trading day on Friday, 10th we expect First Trust STOXX European Select Dividend Index Fund to open at $12.38, and during the day (based on 14 day Average True Range), to move between $12.26 and $12.52, which gives a possible trading interval of +/-$0.128 (+/-1.03%) up or down from last closing price. If First Trust STOXX European Select Dividend Index Fund takes out the full calculated possible swing range there will be an estimated 2.06% move between the lowest and the highest trading price during the day.

With no resistance above and support from accumulated volume @ $11.63, some $0.755 (6.09%) from the current price of $12.39, our system finds the risk reward attractive.

Is First Trust STOXX European Select Dividend Index Fund ETF A Buy?

First Trust STOXX European Select 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: 0.000 Hold/Accumulate Downgraded

Zero in score indicates that our system is expecting high volatility and risk for the following trading day. Given the latest developments, we cannot determine the next direction as it may go both ways.

Predicted Opening Price for First Trust STOXX European Select Dividend Index Fund of Friday, May 10, 2024

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