Western Asset Municipal High Income Fund Stock Forecast

Western Asset Municipal High Income Fund stock downgraded from Buy Candidate to Sell Candidate after Tuesday trading session.
(Updated on May 21, 2024)

MHF Signals & Forecast

There are few to no technical positive signals at the moment. The Western Asset Municipal High Income Fund stock holds sell signals from both short and long-term Moving Averages giving a more negative forecast for the stock. On corrections up, there will be some resistance from the lines at $6.80 and $6.79. A break-up above any of these levels will issue buy signals. A sell signal was issued from a pivot top point on Wednesday, April 17, 2024, and so far it has fallen -2.02%. Further fall is indicated until a new bottom pivot has been found. Furthermore, there is currently a sell signal from the 3 month Moving Average Convergence Divergence (MACD). Western Asset Municipal High Income Fund gained volume on the last day, but on falling prices. In technical terms, this is called divergence and may be an early warning. In some cases, increasing volume on falling prices may be considered positive, but that is mainly in typical "sell-offs". The stock had a Golden Star Signal on Tuesday, July 11, 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 stock in question.

Support, Risk & Stop-loss for Western Asset Municipal High Income Fund stock

Western Asset Municipal High Income Fund finds support from accumulated volume at $6.74 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 $0.0500 between high and low, or 0.737%. For the last week the stock has had daily average volatility of 0.530%.

Our recommended stop-loss: We hold a negative evaluation for this stock. No stop-loss is set.

Trading Expectations (MHF) For The Upcoming Trading Day Of Wednesday 22nd

For the upcoming trading day on Wednesday, 22nd we expect Western Asset Municipal High Income Fund Inc to open at $6.80, and during the day (based on 14 day Average True Range), to move between $6.73 and $6.83, which gives a possible trading interval of +/-$0.0530 (+/-0.78%) up or down from last closing price. If Western Asset Municipal High Income Fund Inc takes out the full calculated possible swing range there will be an estimated 1.56% move between the lowest and the highest trading price during the day.

Since the stock is closer to the resistance from accumulated volume at $6.79 (0.15%) than the support at $6.74 (0.59%), 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 Western Asset Municipal High Income Fund Inc stock A Buy?

The Western Asset Municipal High Income Fund stock holds several negative signals and despite the positive trend, we believe Western Asset Municipal High Income Fund will perform weakly in the next couple of days or weeks. Therefore, we hold a negative evaluation of this stock. Due to some small weaknesses in the technical picture we have downgraded our analysis conclusion for this stock since the last evaluation from a Buy to a Sell candidate.

Current score: -1.755 Sell Candidate Downgraded

Predicted Opening Price for Western Asset Municipal High Income Fund Inc of Wednesday, May 22, 2024

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