BMO Covered Call Canadian Banks 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
Weaker technical forecast for BMO Covered Call Canadian Banks as ETF downgraded to Sell Candidate.
(Updated on Jul 03, 2024)
The BMO Covered Call Canadian Banks ETF price gained 1.13% on the last trading day (Wednesday, 3rd Jul 2024), rising from $17.33 to $17.53. It has now gained 3 days in a row. It will be exciting to see whether it manages to continue gaining or take a minor break for the next few days. During the last trading day the ETF fluctuated 0.86% from a day low at $17.39 to a day high of $17.54. The price has risen in 6 of the last 10 days and is up by 1.48% over the past 2 weeks. Volume fell on the last day by -15 thousand shares and in total, 101 thousand shares were bought and sold for approximately $1.77 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 falling trend in the short term and further fall within the trend is signaled. Given the current short-term trend, the ETF is expected to fall -3.87% during the next 3 months and, with a 90% probability hold a price between $16.37 and $17.21 at the end of this 3-month period. Do note, that if the stock price manages to stay at current levels or higher, our prediction target will start to change positively over the next few days as the conditions for the current predictions will be broken.
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ZWB.TO Signals & Forecast
A buy signal was issued from a pivot bottom point on Thursday, June 20, 2024, and so far it has risen 2.37%. 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 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. The BMO Covered Call Canadian Banks ETF holds a buy signal from the short-term Moving Average; at the same time, however, the long-term average holds a general sell signal. Since the longterm average is above the short-term average there is a general sell signal in the ETF giving a more negative forecast for the stock. On further gains, the ETF will meet resistance from the long-term Moving Average at $17.71. On a fall, the ETF will find some support from the short-term average at $17.37. A break-up through the long-term average will give another buy signal, while a fall below the short-term average will add another sell signal and strengthen the general signal.
Support, Risk & Stop-loss for BMO Covered Call Canadian Banks ETF
BMO Covered Call Canadian Banks finds support from accumulated volume at $17.39 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 $0.150 between high and low, or 0.86%. For the last week the ETF has had daily average volatility of 0.788%.
Our recommended stop-loss: We hold a negative evaluation for this stock. No stop-loss is set.
Trading Expectations (ZWB.TO) For The Upcoming Trading Day Of Thursday 4th
For the upcoming trading day on Thursday, 4th we expect BMO Covered Call Canadian Banks ETF to open at $17.49, and during the day (based on 14 day Average True Range), to move between $17.36 and $17.69, which gives a possible trading interval of +/-$0.162 (+/-0.92%) up or down from last closing price. If BMO Covered Call Canadian Banks ETF takes out the full calculated possible swing range there will be an estimated 1.84% move between the lowest and the highest trading price during the day.
Since the stock is closer to the support from accumulated volume at $17.39 (0.77%) than the resistance at $18.01 (2.77%), our systems sees the trading risk/reward intra-day as attractive and believe profit can be made before the stock reaches first resistance..
Is BMO Covered Call Canadian Banks ETF ETF A Buy?
BMO Covered Call Canadian Banks holds several negative signals and we believe that it will still perform weakly in the next couple of days or weeks. We, therefore, hold a negative evaluation of this ETF. Due to some small weaknesses in the technical picture we have downgraded our analysis conclusion for this ETF since the last evaluation from a Hold/Accumulate to a Sell candidate.
Current score: -1.715 Sell Candidate Downgraded
Predicted Opening Price for BMO Covered Call Canadian Banks ETF of Thursday, July 4, 2024
| Fair opening price July 4, 2024 | Current price |
|---|---|
| $17.49 ( 0.228%) | $17.53 |
The predicted opening price is based on yesterday's movements between high, low, and closing price.
Trading levels for ZWB.TO
Fibonacci Support & Resistance Levels
| Level | Price | |
|---|---|---|
| R3 | 17.64 | 0.628% |
| R2 | 17.58 | 0.301% |
| R1 | 17.54 | 0.0987% |
| Price | 17.53 | |
| S1 | 17.43 | -0.555% |
| S2 | 17.39 | -0.757% |
| S3 | 17.34 | -1.08% |
Accumulated Volume Support & Resistance Levels
| Level | Price | |
|---|---|---|
| R3 | 18.18 | 3.74% |
| R2 | 18.15 | 3.57% |
| R1 | 18.01 | 2.77% |
| Price | 17.53 | |
| S1 | 17.39 | -0.770% |
| S2 | 17.27 | -1.46% |
| S3 | 17.25 | -1.57% |
ZWB Dividend Payout History
| # | Ex-Date | Pay Date | Amount | Yield | |
|---|---|---|---|---|---|
| 1 | Apr 26, 2024 | Apr 26, 2024 | May 02, 2024 | $0.110 | 0.622% |
| 2 | Mar 27, 2024 | Mar 27, 2024 | Apr 02, 2024 | $0.110 | 0.605% |
| 3 | Feb 27, 2024 | Feb 27, 2024 | Mar 04, 2024 | $0.110 | 0.619% |
| 4 | Jan 29, 2024 | Jan 29, 2024 | Feb 02, 2024 | $0.110 | 0.629% |
| 5 | Dec 27, 2023 | Dec 27, 2023 | Dec 27, 2023 | $0.110 | 0.618% |
FAQ
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