BMO Covered Call Utilities ETF Forecast

BMO Covered Call Utilities ETF upgraded to Buy Candidate.
(Updated on May 09, 2024)

ZWU.TO Signals & Forecast

Mostly positive signals in the chart today. The BMO Covered Call Utilities 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 $10.21 and $10.05. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Tuesday, April 16, 2024, and so far it has risen 6.91%. 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. The ETF had a Golden Star Signal on Wednesday, May 01, 2024 in the short-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 ETF in question.

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

BMO Covered Call Utilities finds support from accumulated volume at $10.12 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 $0.0600 between high and low, or 0.583%. For the last week the ETF has had daily average volatility of 0.598%.

The BMO Covered Call Utilities 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. 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. Since the BMO Covered Call Utilities has been rising for 7 days in a row, the risk over the next couple of days has increased. We don't expect a major reaction as the ETF is in very good shape technically, and therefore hold a positive evaluation despite the very short term risk.

Our recommended stop-loss: $9.89 (-4.53%) (This ETF has low daily movements and this gives low risk. The RSI14 is 78 and this increases the risk substantially. There is a buy signal from a pivot bottom found 17 days ago.)

Trading Expectations (ZWU.TO) For The Upcoming Trading Day Of Friday 10th

For the upcoming trading day on Friday, 10th we expect BMO Covered Call Utilities ETF to open at $10.34, and during the day (based on 14 day Average True Range), to move between $10.27 and $10.45, which gives a possible trading interval of +/-$0.0883 (+/-0.85%) up or down from last closing price. If BMO Covered Call Utilities ETF takes out the full calculated possible swing range there will be an estimated 1.70% move between the lowest and the highest trading price during the day.

With no resistance above and support from accumulated volume @ $10.12, some $0.240 (2.32%) from the current price of $10.36, our system finds the risk reward attractive.

Is BMO Covered Call Utilities ETF ETF A Buy?

Several short-term signals are positive and we conclude that the current level may hold a buying opportunity, as there is a fair chance for BMO Covered Call Utilities ETF to perform well in the short-term period. We have upgraded our analysis conclusion for this ETF since the last evaluation from a Hold/Accumulate to a Buy candidate.

Current score: 2.757 Buy Candidate Upgraded

Predicted Opening Price for BMO Covered Call Utilities ETF of Friday, May 10, 2024

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