iShares U.S. Aerospace & Defense ETF Forecast

Evaluation of iShares U.S. Aerospace & Defense ETF downgraded after the last trading session.
(Updated on May 20, 2024)

ITA Signals & Forecast

The iShares U.S. Aerospace & Defense 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 $135.04 and $131.07. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Monday, April 15, 2024, and so far it has risen 7.34%. 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). Volume is rising along with the price. This is considered to be a good technical signal.

Buy

Special Signal Notification

Double Bottom Formation

A buy signal from a double bottom formation was found on Monday, April 15, 2024 with a target of $136.07. Despite whether the objective of the signal formation has been reached the ETF may continue to perform well.

Support, Risk & Stop-loss for iShares U.S. Aerospace & Defense ETF

iShares U.S. Aerospace & Defense finds support from accumulated volume at $131.07 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.

This ETF is usually traded at a good volume, and with minor daily changes, the risk is considered to be low. During the last day, the ETF moved $1.03 (0.760%) between high and low. For the last week, the ETF has had daily average volatility of 0.703%.

The iShares U.S. Aerospace & Defense 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.

Our recommended stop-loss: $131.88 (-3.30%) (This ETF has low daily movements and this gives low risk. The RSI14 is 85 and this increases the risk substantially. There is a buy signal from a pivot bottom found 36 days ago.)

Trading Expectations (ITA) For The Upcoming Trading Day Of Tuesday 21st

For the upcoming trading day on Tuesday, 21st we expect iShares U.S. Aerospace & Defense ETF to open at $136.20, and during the day (based on 14 day Average True Range), to move between $135.05 and $137.71, which gives a possible trading interval of +/-$1.33 (+/-0.97%) up or down from last closing price. If iShares U.S. Aerospace & Defense ETF takes out the full calculated possible swing range there will be an estimated 1.94% move between the lowest and the highest trading price during the day.

With no resistance above and support from accumulated volume @ $131.07, some $5.31 (3.89%) from the current price of $136.38, our system finds the risk reward attractive.

Is iShares U.S. Aerospace & Defense ETF ETF A Buy?

iShares U.S. Aerospace & Defense 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. 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: 0.000 Hold/Accumulate Downgraded

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 iShares U.S. Aerospace & Defense ETF of Tuesday, May 21, 2024

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