First Trust Specialty Finance and Stock Forecast

First Trust Specialty Finance and stock upgraded from Buy Candidate to Strong Buy Candidate after Thursday trading session.
(Updated on May 02, 2024)

FGB Signals & Forecast

Mostly positive signals in the chart today. The First Trust Specialty Finance and stock 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 $3.74 and $3.65. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Monday, April 15, 2024, and so far it has risen 7.95%. 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 Specialty Finance and 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 Specialty Finance and stock

First Trust Specialty Finance and finds support from accumulated volume at $3.65 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.

This stock is usually traded at a good volume, and with minor daily changes, the risk is considered to be low. During the last day, the stock moved $0.0300 (0.789%) between high and low. For the last week, the stock has had daily average volatility of 1.08%.

The First Trust Specialty Finance and stock 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 stocks 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 stock manages to break the trend before that occurs.

Our recommended stop-loss: $3.64 (-4.27%) (This stock has low daily movements and this gives low risk. The RSI14 is 81 and this increases the risk substantially. There is a buy signal from a pivot bottom found 13 days ago.)

Trading Expectations (FGB) For The Upcoming Trading Day Of Friday 3rd

For the upcoming trading day on Friday, 3rd we expect First Trust Specialty Finance and Financial Opportunities Fund to open at $3.81, and during the day (based on 14 day Average True Range), to move between $3.75 and $3.85, which gives a possible trading interval of +/-$0.0520 (+/-1.37%) up or down from last closing price. If First Trust Specialty Finance and Financial Opportunities Fund takes out the full calculated possible swing range there will be an estimated 2.74% move between the lowest and the highest trading price during the day.

With no resistance above and support from accumulated volume @ $3.65, some $0.150 (3.95%) from the current price of $3.80, our system finds the risk reward attractive.

Is First Trust Specialty Finance and Financial Opportunities Fund stock A Buy?

First Trust Specialty Finance and holds several positive signals and is within a weak rising trend. As the old saying says, "Let the trend be your friend.'". We therefore consider it to be a good choice at these current levels and we are expecting further gains during the next 3 months. We have upgraded our analysis conclusion for this stock since the last evaluation from a Buy to a Strong Buy candidate.

Current score: 5.316 Strong Buy Candidate Upgraded

Predicted Opening Price for First Trust Specialty Finance and Financial Opportunities Fund of Friday, May 3, 2024

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