First Trust AlphaDEX U.S. Industrials ETF Forecast

First Trust AlphaDEX U.S. Industrials ETF downgraded from Buy Candidate to Hold/Accumulate after Friday trading session.
(Updated on May 31, 2024)

FHG.TO Signals & Forecast

A buy signal was issued from a pivot bottom point on Wednesday, May 29, 2024, and so far it has risen 0.542%. Further rise is indicated until a new top pivot has been found. Some negative signals were issued as well, and these may have some influence on the near short-term development. The First Trust AlphaDEX U.S. Industrials ETF holds sell signals from both short and long-term Moving Averages giving a more negative forecast for the stock. Also, there is a general sell signal from the relation between the two signals where the long-term average is above the short-term average. On corrections up, there will be some resistance from the lines at $50.39 and $50.60. A break-up above any of these levels will issue buy signals. Furthermore, there is currently a sell signal from the 3 month Moving Average Convergence Divergence (MACD). Volume fell on the last day without any changes to the price. This does not cause any direct divergence but may be an early warning and a possible "turning point". The very low volume increases the risk and reduces the other technical signals issued.

Buy

Special Signal Notification

Double Bottom Formation

A buy signal from a double bottom formation was found on Wednesday, May 29, 2024 and based on theory for this formation the price should go up by 3.92% to $52.01 within 27 trading days since signal was issued (Monday, June 03, 2024).

Support, Risk & Stop-loss for First Trust AlphaDEX U.S. Industrials ETF

First Trust AlphaDEX U.S. Industrials finds support from accumulated volume at $49.83 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 therefore the general risk is considered very low. However, be aware of low or falling volume and make sure to keep an eye on the ETF During the last day, the ETF moved $0 between high and low, or 0%. For the last week the ETF has had daily average volatility of 0.196%

Our recommended stop-loss: $46.89 (-6.31%) (This ETF has low daily movements and this gives low risk. There is a buy signal from a pivot bottom found 8 days ago.)

Trading Expectations (FHG.TO) For The Upcoming Trading Day Of Monday 3rd

For the upcoming trading day on Monday, 3rd we expect First Trust AlphaDEX U.S. Industrials Sector Index ETF to open at $50.05, and during the day (based on 14 day Average True Range), to move between $49.77 and $50.33, which gives a possible trading interval of +/-$0.278 (+/-0.56%) up or down from last closing price. If First Trust AlphaDEX U.S. Industrials Sector Index 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 $50.18 (0.26%) than the support at $49.83 (0.44%), 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 First Trust AlphaDEX U.S. Industrials Sector Index ETF ETF A Buy?

First Trust AlphaDEX U.S. Industrials holds several negative signals and this should be a sell candidate, but due to the general chance for a turnaround situation 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: -0.212 Hold/Accumulate Downgraded

Predicted Opening Price for First Trust AlphaDEX U.S. Industrials Sector Index ETF of Monday, June 3, 2024

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