iShares Edge MSCI USA Momentum Factor ETF Forecast

Green day on Tuesday for iShares Edge MSCI USA Momentum Factor ETF after gaining 0.0529%
(Updated on May 21, 2024)

MTUM Signals & Forecast

The iShares Edge MSCI USA Momentum Factor 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 $187.26 and $182.65. 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, May 15, 2024, and so far it has fallen -0.0423%. Further fall is indicated until a new bottom pivot has been found.

Sell

Special Signal Notification

Double Top Formation

A sell signal from a double top formation was found on Wednesday, May 15, 2024 and based on theory for this formation the price should fall by -12.32% to $165.80 within 48 trading days since signal was issued (Wednesday, May 22, 2024).

Support, Risk & Stop-loss for iShares Edge MSCI USA Momentum Factor ETF

iShares Edge MSCI USA Momentum Factor finds support from accumulated volume at $187.73 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 $1.22 (0.649%) between high and low. For the last week, the ETF has had daily average volatility of 1.04%.

The iShares Edge MSCI USA Momentum Factor 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: $183.80 (-2.80%) (This ETF has low daily movements and this gives low risk. The RSI14 is 85 and this increases the risk substantially. There is a sell signal from a pivot top found 22 days ago.)

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

For the upcoming trading day on Wednesday, 22nd we expect iShares Edge MSCI USA Momentum Factor ETF to open at $188.75, and during the day (based on 14 day Average True Range), to move between $186.47 and $191.73, which gives a possible trading interval of +/-$2.63 (+/-1.39%) up or down from last closing price. If iShares Edge MSCI USA Momentum Factor ETF takes out the full calculated possible swing range there will be an estimated 2.79% move between the lowest and the highest trading price during the day.

Since the stock is closer to the resistance from accumulated volume at $189.18 (0.04%) than the support at $187.73 (0.72%), 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 iShares Edge MSCI USA Momentum Factor ETF ETF A Buy?

Several short-term signals are positive and the ETF has broken the horizontal trend up, which indicates an even stronger rate of rising. We conclude that the current level may hold a buying opportunity as there is a fair chance for iShares Edge MSCI USA Momentum Factor ETF to perform well in the short-term period.

Current score: 1.628 Buy Candidate Unchanged

Predicted Opening Price for iShares Edge MSCI USA Momentum Factor ETF of Wednesday, May 22, 2024

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