BMO CA High Dividend Covered Call ETF Forecast

BMO CA High Dividend Covered Call ETF downgraded to Hold/Accumulate
(Updated on May 17, 2024)

ZWC.TO Signals & Forecast

The BMO CA High Dividend Covered Call 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 $17.51 and $17.22. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Wednesday, April 17, 2024, and so far it has risen 4.58%. 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). BMO CA High Dividend Covered Call has increased volume and follows the last lift in the price. This is considered to be a technical positive sign as volume should follow the price-formation. Higher liquidity also reduces the general risk.

Support, Risk & Stop-loss for BMO CA High Dividend Covered Call ETF

BMO CA High Dividend Covered Call 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 $0.0850 between high and low, or 0.486%. For the last week the ETF has had daily average volatility of 0.361%.

The BMO CA High Dividend Covered Call ETF is extremely overbought on RSI14 (82). 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: $16.67 (-5.18%) (This ETF has low daily movements and this gives low risk. The RSI14 is 82 and this increases the risk substantially. There is a buy signal from a pivot bottom found 22 days ago.)

Trading Expectations (ZWC.TO) For The Upcoming Trading Day Of Tuesday 21st

For the upcoming trading day on Tuesday, 21st we expect BMO CA High Dividend Covered Call ETF to open at $17.56, and during the day (based on 14 day Average True Range), to move between $17.47 and $17.69, which gives a possible trading interval of +/-$0.106 (+/-0.60%) up or down from last closing price. If BMO CA High Dividend Covered Call ETF takes out the full calculated possible swing range there will be an estimated 1.21% move between the lowest and the highest trading price during the day.

With no resistance above and support from accumulated volume @ $17.39, some $0.190 (1.08%) from the current price of $17.58, our system finds the risk reward attractive.

Is BMO CA High Dividend Covered Call ETF ETF A Buy?

BMO CA High Dividend Covered Call 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 BMO CA High Dividend Covered Call ETF of Tuesday, May 21, 2024

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