PowerShares S&P SmallCap Materials ETF Forecast

Green day on Tuesday for PowerShares S&P SmallCap Materials ETF after gaining 0.0147%
(Updated on Apr 23, 2024)

PSCM Signals & Forecast

There are mixed signals in the ETF today. The PowerShares S&P SmallCap Materials ETF holds a buy signal from the short-term Moving Average; at the same time, however, the long-term average holds a general sell signal. Since the longterm average is above the short-term average there is a general sell signal in the ETF giving a more negative forecast for the stock. On further gains, the ETF will meet resistance from the long-term Moving Average at $74.72. On a fall, the ETF will find some support from the short-term average at $73.98. A break-up through the long-term average will give another buy signal, while a fall below the short-term average will add another sell signal and strengthen the general signal. A sell signal was issued from a pivot top point on Wednesday, March 27, 2024, and so far it has fallen -3.61%. 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). PowerShares S&P SmallCap Materials 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. The very low volume increases the risk and reduces the other technical signals issued. The ETF had a Golden Star Signal on Monday, January 29, 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 PowerShares S&P SmallCap Materials ETF

PowerShares S&P SmallCap Materials finds support from accumulated volume at $73.84 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 $0.280 between high and low, or 0.378%. For the last week the ETF has had daily average volatility of 0.450%.

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

Trading Expectations (PSCM) For The Upcoming Trading Day Of Wednesday 24th

For the upcoming trading day on Wednesday, 24th we expect PowerShares S&P SmallCap Materials Portfolio to open at $74.16, and during the day (based on 14 day Average True Range), to move between $73.27 and $74.87, which gives a possible trading interval of +/-$0.80 (+/-1.08%) up or down from last closing price. If PowerShares S&P SmallCap Materials Portfolio takes out the full calculated possible swing range there will be an estimated 2.17% move between the lowest and the highest trading price during the day.

Since the stock is closer to the support from accumulated volume at $73.84 (0.31%) than the resistance at $74.82 (1.02%), our systems sees the trading risk/reward intra-day as attractive and believe profit can be made before the stock reaches first resistance..

Is PowerShares S&P SmallCap Materials Portfolio ETF A Buy?

PowerShares S&P SmallCap Materials holds several negative signals and we believe that it will still perform weakly in the next couple of days or weeks. We, therefore, hold a negative evaluation of this ETF.

Current score: -3.803 Sell Candidate Unchanged

Predicted Opening Price for PowerShares S&P SmallCap Materials Portfolio of Wednesday, April 24, 2024

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