Colonial Municipal Income Trust Stock Forecast

Red day on Wednesday for Colonial Municipal Income Trust
(Updated on Apr 24, 2024)

CMU Signals & Forecast

There are few to no technical positive signals at the moment. The Colonial Municipal Income Trust stock holds sell signals from both short and long-term Moving Averages giving a more negative forecast for the stock. Also, there is a general sell signal from the relation between the two signals where the long-term average is above the short-term average. On corrections up, there will be some resistance from the lines at $3.24 and $3.29. A break-up above any of these levels will issue buy signals. A sell signal was issued from a pivot top point on Thursday, March 28, 2024, and so far it has fallen -3.27%. Further fall is indicated until a new bottom pivot has been found. Furthermore, there is currently a sell signal from the 3 month Moving Average Convergence Divergence (MACD). Volume fell along with the price during the last trading day, which is technical positive. One should, however, note that this stock may have low liquidity in periods, which increases the general risk. The stock had a Golden Star Signal on Friday, May 12, 2023 in the long-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 stock in question.

Buy

Special Signal Notification

Golden Star 12 Months

The stock had a Golden Star Signal on Friday, May 12, 2023 in the long-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 stock in question.

Sell

Special Signal Notification

Double Top Formation

A sell signal from a double top formation was found on Thursday, March 28, 2024 with a target of $3.29. Despite whether the objective of the signal formation has been reached the stock may continue to fall.

Support, Risk & Stop-loss for Colonial Municipal Income Trust stock

There is no support from accumulated volume below today's level and given the right condition the stock may perform very badly in the next couple of days.

In general the stock 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 stock During the last day, the stock moved $0.0300 between high and low, or 0.93%. For the last week the stock has had daily average volatility of 0.649%

Our recommended stop-loss: We hold a negative evaluation for this stock. No stop-loss is set.

Trading Expectations (CMU) For The Upcoming Trading Day Of Thursday 25th

For the upcoming trading day on Thursday, 25th we expect Colonial Municipal Income Trust to open at $3.23, and during the day (based on 14 day Average True Range), to move between $3.20 and $3.25, which gives a possible trading interval of +/-$0.0252 (+/-0.78%) up or down from last closing price. If Colonial Municipal Income Trust takes out the full calculated possible swing range there will be an estimated 1.57% move between the lowest and the highest trading price during the day.

With no support below and resistance from accumulated volume @ $3.28, some $0.0590 (1.83%) from the current price of $3.22, our system finds the risk reward not very attractive.

Is Colonial Municipal Income Trust stock A Buy?

Colonial Municipal Income Trust holds several negative signals and is within a narrow and falling trend, so we believe it will still perform weakly in the next couple of days or weeks. We therefore hold a negative evaluation of this stock.

Current score: -3.877 Sell Candidate Unchanged

Predicted Opening Price for Colonial Municipal Income Trust of Thursday, April 25, 2024

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