First Trust NASDAQ Clean Edge Smart Grid ETF Forecast
Explanation to Bollinger's Bands
Bollinger Bands was created by John Bollinger in the early 1980s, its purpose is to define price action relative to the assets highs and lows. This technical indicator is used to identify buy and sell signals and has proven very well in doing so.
Bollinger Bands consist of a set of three curves drawn in relation to securities prices. The middle band is a measure of the intermediate-term trend, usually a simple moving average, that serves as the base for the upper and lower bands. The interval between the upper and lower bands and the middle band is determined by volatility, typically the standard deviation of the same data that were used for the average. StockInvest.us uses Bollingers suggested 20 day average.
Middle Bollinger Band = 20-period simple moving average
Upper Bollinger Band = Middle Bollinger Band + 2 * 20-period standard deviation
Lower Bollinger Band = Middle Bollinger Band - 2 * 20-period standard deviation
BandWidth defines the current width of the band.
%b defines the current position within the band.
BandWidth = (Upper Bollinger Band - Lower Bollinger Band) / Middle Bollinger Band
%b = (Last - Lower Bollinger Band) / (Upper Bollinger Band - Lower Bollinger Band)
Live Samples:
Bottlenecks in bandwidth indicate an upcoming change. Break up through the moving average line or continuous movements above the moving average line indicate a break up, and vice versa.
Source: http://www.bollingerbands.com
First Trust NASDAQ Clean Edge Smart Grid ETF upgraded from Strong Sell Candidate to Buy Candidate after Thursday trading session.
(Updated on May 02, 2024)
The First Trust NASDAQ Clean Edge Smart Grid ETF price gained 1.53% on the last trading day (Thursday, 2nd May 2024), rising from $111.34 to $113.04. During the last trading day the ETF fluctuated 1.60% from a day low at $111.35 to a day high of $113.13. The price has risen in 6 of the last 10 days and is up by 2.31% over the past 2 weeks. Volume fell on the last day by -49 thousand shares and in total, 31 thousand shares were bought and sold for approximately $3.49 million. You should take into consideration that falling volume on higher prices causes divergence and may be an early warning about possible changes over the next couple of days.
The ETF lies in the middle of a weak rising trend in the short term and a further rise within the trend is signaled. Given the current short-term trend, the ETF is expected to rise 8.50% during the next 3 months and, with a 90% probability hold a price between $120.34 and $128.76 at the end of this 3-month period.
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GRID Signals & Forecast
The First Trust NASDAQ Clean Edge Smart Grid 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 $112.81 and $112.79. A breakdown below any of these levels will issue sell signals. Furthermore, there is a buy signal from the 3 month Moving Average Convergence Divergence (MACD). Volume fell during the last trading day despite gaining prices. This causes a divergence between volume and price and it may be an early warning. The ETF should be watched closely. Some negative signals were issued as well, and these may have some influence on the near short-term development. A sell signal was issued from a pivot top point on Wednesday, March 27, 2024, and so far it has fallen -1.58%. Further fall is indicated until a new bottom pivot has been found.
Support, Risk & Stop-loss for First Trust NASDAQ Clean Edge Smart Grid ETF
First Trust NASDAQ Clean Edge Smart Grid finds support from accumulated volume at $112.28 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 $1.78 between high and low, or 1.60%. For the last week the ETF has had daily average volatility of 1.43%.
Our recommended stop-loss: $108.99 (-3.58%) (This ETF has low daily movements and this gives low risk. There is a sell signal from a pivot top found 25 days ago.)
Trading Expectations (GRID) For The Upcoming Trading Day Of Friday 3rd
For the upcoming trading day on Friday, 3rd we expect First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index to open at $112.51, and during the day (based on 14 day Average True Range), to move between $111.35 and $114.73, which gives a possible trading interval of +/-$1.69 (+/-1.49%) up or down from last closing price. If First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index takes out the full calculated possible swing range there will be an estimated 2.99% move between the lowest and the highest trading price during the day.
Since the stock is closer to the resistance from accumulated volume at $113.58 (0.48%) than the support at $112.28 (0.67%), 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 NASDAQ Clean Edge Smart Grid Infrastructure Index ETF A Buy?
Several short-term signals, along with a general good trend, are positive and we conclude that the current level may hold a buying opportunity as there is a fair chance for First Trust NASDAQ Clean Edge Smart Grid ETF to perform well in the short-term. We have upgraded our analysis conclusion for this ETF since the last evaluation from a Strong Sell to a Buy candidate.
Current score: 1.019 Buy Candidate Upgraded
Predicted Opening Price for First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index of Friday, May 3, 2024
| Fair opening price May 3, 2024 | Current price |
|---|---|
| $112.51 ( 0.472%) | $113.04 |
The predicted opening price is based on yesterday's movements between high, low, and closing price.
Trading levels for GRID
Fibonacci Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 114.29 | 1.10 % | |
| R2 | 113.61 | 0.501 % | ||
| R1 | 113.19 | 0.130 % | ||
| Current price: | 113.04 | |||
| Support | S1 | 111.83 | -1.07 % | |
| S2 | 111.41 | -1.44 % | ||
| S3 | 110.73 | -2.05 % |
Accumulated Volume Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 114.86 | 1.61 % | |
| R2 | 113.90 | 0.761 % | ||
| R1 | 113.58 | 0.478 % | ||
| Current price | 113.04 | |||
| Support | S1 | 112.28 | -0.672% | |
| S2 | 111.42 | -1.43% | ||
| S3 | 101.67 | -10.06% |
GRID Dividend Payout History
| # | Ex-Date | Pay Date | Amount | Yield | |
|---|---|---|---|---|---|
| 1 | Mar 21, 2024 | Mar 21, 2024 | Mar 28, 2024 | $0.102 | 0.0888% |
| 2 | Dec 22, 2023 | Dec 22, 2023 | Dec 29, 2023 | $0.355 | 0.339% |
| 3 | Sep 21, 2023 | Sep 22, 2023 | Sep 29, 2023 | $0.159 | 0.169% |
| 4 | Jun 26, 2023 | Jun 27, 2023 | Jun 30, 2023 | $0.698 | 0.664% |
| 5 | Mar 23, 2023 | Mar 24, 2023 | Mar 31, 2023 | $0.0800 | 0.0819% |
FAQ
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