First Trust Utilities AlphaDEX Fund ETF Forecast

First Trust Utilities AlphaDEX Fund ETF price up 0.0217% on Friday
(Updated on May 10, 2024)

FXU Signals & Forecast

The First Trust Utilities AlphaDEX Fund 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 $33.89 and $32.47. 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 12.24%. 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). Some negative signals were issued as well, and these may have some influence on the near short-term development. Volume fell during the last trading day while the price increased. This causes a divergence and may be considered as an early warning, but it may also not.

Support, Risk & Stop-loss for First Trust Utilities AlphaDEX Fund ETF

On the downside, the ETF finds support just below today's level from accumulated volume at $30.54 and $30.53. 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 Utilities AlphaDEX Fund finds support just below today's level at $30.54. If this is broken, then the next support from accumulated volume will be at $30.53 and $30.38.

This ETF has average movements during the day, but be aware of low or falling volume as this increases the risk. During the last day, the ETF moved $0.220 between high and low, or 0.638%. For the last week the ETF has had daily average volatility of 0.92%.

The First Trust Utilities AlphaDEX Fund ETF is extremely overbought on RSI14 (85). Normally this may pose a good selling opportunity but since the ETF has broken the trend up, the chance for a major correction due to high RSI is very small as the ETF will find support at the trend broken. Since the First Trust Utilities AlphaDEX Fund has been rising for 8 days in a row, the risk over the next couple of days has increased. As we cannot be certain with regards to the size of the reaction, we urge caution.

Our recommended stop-loss: $33.06 (-4.31%) (This ETF has medium daily movements and this gives medium risk. The RSI14 is 85 and this increases the risk substantially. There is a buy signal from a pivot bottom found 18 days ago.)

Trading Expectations (FXU) For The Upcoming Trading Day Of Monday 13th

For the upcoming trading day on Monday, 13th we expect First Trust Utilities AlphaDEX Fund to open at $34.57, and during the day (based on 14 day Average True Range), to move between $34.16 and $34.94, which gives a possible trading interval of +/-$0.391 (+/-1.13%) up or down from last closing price. If First Trust Utilities AlphaDEX Fund takes out the full calculated possible swing range there will be an estimated 2.26% move between the lowest and the highest trading price during the day.

With no resistance above and support from accumulated volume @ $30.54, some $4.01 (11.60%) from the current price of $34.55, our system finds the risk reward attractive.

Is First Trust Utilities AlphaDEX Fund ETF A Buy?

First Trust Utilities AlphaDEX Fund 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.

Current score: 0.000 Hold/Accumulate Unchanged

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 Utilities AlphaDEX Fund of Monday, May 13, 2024

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