Franklin Universal Trust Stock Forecast

Franklin Universal Trust stock price ended at $6.67 on Friday, after gaining 0.680%.
(Updated on May 03, 2024)

FT Signals & Forecast

Mostly positive signals in the chart today. The Franklin Universal Trust 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 $6.59 and $6.55. 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 4.65%. 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). Franklin Universal Trust 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. The stock had a Golden Star Signal on Tuesday, March 26, 2024 for the short-term and also have Golden Star Signal for the medium-term dated Tuesday, March 26, 2024.

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 stock in question.

Support, Risk & Stop-loss for Franklin Universal Trust stock

Franklin Universal Trust finds support from accumulated volume at $6.57 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.

In general the stock tends to have very controlled movements and with good liquidity the risk is considered very low in this stock. During the last day, the stock moved $0.0364 between high and low, or 0.548%. For the last week the stock has had daily average volatility of 0.96%.

The Franklin Universal Trust 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 and the RSI is still moving upwards. 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: $6.35 (-4.75%) (This stock has low daily movements and this gives low risk. The RSI14 is 80 and this increases the risk substantially. There is a buy signal from a pivot bottom found 13 days ago.)

Trading Expectations (FT) For The Upcoming Trading Day Of Monday 6th

For the upcoming trading day on Monday, 6th we expect Franklin Universal Trust to open at $6.66, and during the day (based on 14 day Average True Range), to move between $6.60 and $6.73, which gives a possible trading interval of +/-$0.0667 (+/-1.00%) up or down from last closing price. If Franklin Universal Trust takes out the full calculated possible swing range there will be an estimated 2.00% move between the lowest and the highest trading price during the day.

Since the stock is closer to the resistance from accumulated volume at $6.68 (0.17%) than the support at $6.57 (1.43%), 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 Franklin Universal Trust stock A Buy?

Several short-term signals are positive and we conclude that the current level may hold a buying opportunity, as there is a fair chance for Franklin Universal Trust stock to perform well in the short-term period.

Current score: 3.571 Buy Candidate Unchanged

Predicted Opening Price for Franklin Universal Trust of Monday, May 6, 2024

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