First Trust Low Duration Mortgage ETF Forecast

Red day on Friday for First Trust Low Duration Mortgage ETF after losing 0.0419%
(Updated on Apr 19, 2024)

LMBS Signals & Forecast

A buy signal was issued from a pivot bottom point on Tuesday, April 16, 2024, and so far it has risen 0.189%. Further rise is indicated until a new top pivot has been found. Some negative signals were issued as well, and these may have some influence on the near short-term development. The First Trust Low Duration Mortgage 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 $47.73 and $48.08. 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). Volume fell together with the price during the last trading day and this reduces the overall risk as volume should follow the price movements. The ETF had a Golden Star Signal on Wednesday, July 12, 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 First Trust Low Duration Mortgage ETF

First Trust Low Duration Mortgage finds support from accumulated volume at $47.62 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 $0.0700 between high and low, or 0.147%. For the last week the ETF has had daily average volatility of 0.275%.

Our recommended stop-loss: $44.75 (-6.20%) (This ETF has low daily movements and this gives low risk. There is a buy signal from a pivot bottom found 3 days ago.)

Trading Expectations (LMBS) For The Upcoming Trading Day Of Monday 22nd

For the upcoming trading day on Monday, 22nd we expect First Trust Low Duration Mortgage Opportunities ETF to open at $47.73, and during the day (based on 14 day Average True Range), to move between $47.54 and $47.88, which gives a possible trading interval of +/-$0.166 (+/-0.35%) up or down from last closing price. If First Trust Low Duration Mortgage Opportunities ETF takes out the full calculated possible swing range there will be an estimated 0.70% move between the lowest and the highest trading price during the day.

Since the stock is closer to the support from accumulated volume at $47.62 (0.19%) than the resistance at $48.06 (0.73%), our systems sees the trading risk/reward intra-day as attractive and believe profit can be made before the stock reaches first resistance..

Is First Trust Low Duration Mortgage Opportunities ETF ETF A Buy?

First Trust Low Duration Mortgage holds several negative signals and this should be a sell candidate, but due to the general chance for a turnaround situation it should be considered as a hold candidate (hold or accumulate) in this position whilst awaiting further development.

Current score: -0.218 Hold/Accumulate Unchanged

Predicted Opening Price for First Trust Low Duration Mortgage Opportunities ETF of Monday, April 22, 2024

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