Franklin Liberty High Yield Corporate ETF Forecast

Franklin Liberty High Yield Corporate ETF downgraded from Buy Candidate to Sell Candidate after Thursday trading session.
(Updated on Apr 18, 2024)

FLHY Signals & Forecast

A buy signal was issued from a pivot bottom point on Tuesday, April 16, 2024, and so far it has risen 0.172%. Further rise is indicated until a new top pivot has been found. Volume gained on the last day while the price remained unchanged. This is not a classical divergence, but the ETF should be watched more closely at it may be a "turning point". Some negative signals were issued as well, and these may have some influence on the near short-term development. The Franklin Liberty High Yield Corporate 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 $23.31 and $23.53. 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). The ETF had a Golden Star Signal on Friday, June 09, 2023 in the long-term chart.

Golden Star Signal is when the short-term moving average, the long-term moving average, and price line meet in a special combination. This combination is very rare and often followed by long and strong gains for the ETF in question.

Support, Risk & Stop-loss for Franklin Liberty High Yield Corporate ETF

Franklin Liberty High Yield Corporate finds support from accumulated volume at $23.21 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 0.345%. For the last week the ETF has had daily average volatility of 0.392%.

Franklin Liberty High Yield Corporate is oversold on RSI14 (20). Some ETFS may drop long and hard while being oversold on RSI before turning, which increases the general risk.

Our recommended stop-loss: We hold a negative evaluation for this stock. No stop-loss is set.

Trading Expectations (FLHY) For The Upcoming Trading Day Of Friday 19th

For the upcoming trading day on Friday, 19th we expect Franklin Liberty High Yield Corporate ETF to open at $23.23, and during the day (based on 14 day Average True Range), to move between $23.15 and $23.35, which gives a possible trading interval of +/-$0.0982 (+/-0.42%) up or down from last closing price. If Franklin Liberty High Yield Corporate ETF takes out the full calculated possible swing range there will be an estimated 0.84% move between the lowest and the highest trading price during the day.

Since the stock is closer to the support from accumulated volume at $23.21 (0.17%) than the resistance at $23.51 (1.12%), our systems sees the trading risk/reward intra-day as attractive and believe profit can be made before the stock reaches first resistance..

Is Franklin Liberty High Yield Corporate ETF ETF A Buy?

Franklin Liberty High Yield Corporate holds several negative signals and is within a narrow and falling trend, so we believe it will still perform weakly in the next couple of days or weeks. We therefore hold a negative evaluation of this ETF. 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 Sell candidate.

Current score: -1.046 Sell Candidate Downgraded

Predicted Opening Price for Franklin Liberty High Yield Corporate ETF of Friday, April 19, 2024

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