BMO Covered Call US Banks ETF Forecast

BMO Covered Call US Banks ETF price ended at $21.57 on Friday, after losing 0.116%.
(Updated on May 17, 2024)

ZWK.TO Signals & Forecast

The BMO Covered Call US Banks 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 $21.48 and $20.82. 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). 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 Thursday, May 16, 2024, and so far it has fallen -0.116%. Further fall is indicated until a new bottom pivot has been found. Volume fell along with the price during the last trading day, which is technical positive. One should, however, note that this ETF may have low liquidity in periods, which increases the general risk.

Support, Risk & Stop-loss for BMO Covered Call US Banks ETF

BMO Covered Call US Banks finds support from accumulated volume at $20.65 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 therefore the general risk is considered very low. However, be aware of low or falling volume and make sure to keep an eye on the ETF During the last day, the ETF moved $0.0700 between high and low, or 0.325%. For the last week the ETF has had daily average volatility of 0.605%

The BMO Covered Call US Banks ETF is overbought on RSI14 and lies in the upper part of the trend. Normally this may pose a good selling opportunity for the short-term trader, but some ETFS may go long and hard while being overbought and the RSI is still moving upwards. Regardless, the high RSI together with the trend position increases the risk and higher daily movements (volatility) should be expected. A correction down in the nearby future seems very likely, and it is of great importance that the ETF manages to break the trend before that occurs.

Our recommended stop-loss: $20.82 (-3.46%) (This ETF has low daily movements and this gives low risk. The RSI14 is 79 and this increases the risk substantially. There is a sell signal from a pivot top found 1 day ago.)

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

For the upcoming trading day on Tuesday, 21st we expect BMO Covered Call US Banks ETF to open at $21.59, and during the day (based on 14 day Average True Range), to move between $21.34 and $21.79, which gives a possible trading interval of +/-$0.222 (+/-1.03%) up or down from last closing price. If BMO Covered Call US Banks ETF takes out the full calculated possible swing range there will be an estimated 2.06% move between the lowest and the highest trading price during the day.

Since the stock is closer to the resistance from accumulated volume at $21.59 (0.12%) than the support at $20.65 (4.24%), 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 BMO Covered Call US Banks ETF ETF A Buy?

Several short-term signals, along with a general good trend, are positive and we conclude that the current level may hold a buying opportunity as there is a fair chance for BMO Covered Call US Banks ETF to perform well in the short-term.

Current score: 3.472 Buy Candidate Unchanged

Predicted Opening Price for BMO Covered Call US Banks ETF of Tuesday, May 21, 2024

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