Colonial High Income Municipal Trust Stock Forecast

Green day on Tuesday for Colonial High Income Municipal Trust
(Updated on May 07, 2024)

CXE Signals & Forecast

Mostly positive signals in the chart today. The Colonial High Income Municipal Trust stock 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 $3.57 and $3.54. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Thursday, April 18, 2024, and so far it has risen 4.02%. 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). Colonial High Income Municipal Trust 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. The stock had a Golden Star Signal on Wednesday, July 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.

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

Colonial High Income Municipal Trust finds support from accumulated volume at $3.59 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.

In general the stock tends to have very controlled movements and with good liquidity the risk is considered very low in this stock. During the last day, the stock moved $0.0200 between high and low, or 0.554%. For the last week the stock has had daily average volatility of 0.700%.

The Colonial High Income Municipal Trust stock 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 stocks 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 stock manages to break the trend before that occurs. Since the Colonial High Income Municipal Trust 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 stock is in very good shape technically, and therefore hold a positive evaluation despite the very short term risk.

Our recommended stop-loss: $3.45 (-4.62%) (This stock has low daily movements and this gives low risk. The RSI14 is 91 and this increases the risk substantially. There is a buy signal from a pivot bottom found 13 days ago.)

Trading Expectations (CXE) For The Upcoming Trading Day Of Wednesday 8th

For the upcoming trading day on Wednesday, 8th we expect Colonial High Income Municipal Trust to open at $3.62, and during the day (based on 14 day Average True Range), to move between $3.59 and $3.65, which gives a possible trading interval of +/-$0.0339 (+/-0.94%) up or down from last closing price. If Colonial High Income Municipal Trust takes out the full calculated possible swing range there will be an estimated 1.87% move between the lowest and the highest trading price during the day.

Since the stock is closer to the resistance from accumulated volume at $3.63 (0.28%) than the support at $3.59 (0.83%), 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 Colonial High Income Municipal Trust stock A Buy?

Several short-term signals are positive, despite the stock being in a falling trend, we conclude that the current level may hold a buying opportunity as there is a fair chance for stock to perform well in the short-term.

Current score: 3.508 Buy Candidate Unchanged

Predicted Opening Price for Colonial High Income Municipal Trust of Wednesday, May 8, 2024

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