First Trust Mid Cap US Equity Select ETF Stock Analysis
Technical stock analysis for 18 January 2019
First Trust Mid Cap US Equity Select ETF gained 0.93% in the last trading day, rising from $20.27 to $20.46 , and has now gained 11 days in a row. It is not often that stocks manage to gain so many days in a row, and falls for a day or two should be expected. The price has risen in 10 of the last 10 days and is up by 7.62% over the past 2 weeks. Volume fell in the last day by -7 722 shares, and in total, 1 145 shares bought and sold for approximately $23 424.60. You should take into consideration that a falling volume on higher prices causes divergence and may be an early warning about possible changes for the next couple of days.
Close price at the end of the last trading day (Friday, 18th Jan 2019) of the RNMC stock was $20.46. This is 0.93% more than the trading day before Thursday, 17th Jan 2019.
During day the stock fluctuated 0.20% from a day low at $20.46 to a day high of $20.50.
30 day high of the RNMC stock price was $20.50 and low was $17.65.
90 day high was $21.37 and low was $17.65.
52 week high for the First Trust Mid Cap US Equity Select ETF - $23.12 and low - $17.65.
First Trust Mid Cap US Equity Select ETF has broken the wide and falling short-term trend up. Firstly a slower falling rate is indicated, but this may very well be an early signal of a trend shift. On the reaction there will be support on the roof on the current trend broken, which is $20.34, a level that may pose a second chance to hit a runner. According to fan-theory $23.58 will be the next possible trendtop level and thereby pose a resistance level which may not be broken on the first attempt.
First Trust Mid Cap US Equity Select ETF holds buy signals from both short- and long-term moving averages. In addition, 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 $20.03 and $19.61. A break down below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Monday December 24, 2018, which indicates further gains until a new top pivot has been found. Some negative signals were issued as well, and these may have some influence on the near short-term development. Volume fell during the last trading day while the price increased. This causes a divergence and may be considered as an early warning, but it may not be. The very low volume increases the risk and reduces the other technical signals issued.
Relative Strength Index (RSI)
RSI14 is 91 and the stock is extremely overbought on RSI14, but may also ontinue to gain. Some stocks see their best performance while being overbought, but very seldom does RSI remain so high for a long time without short corrections. Risk has therefore increased and larger daily movements can be expected for the next couple of days.
Support & Resistance
On the downside, the stock finds support just below today's level from accumulated volume at $19.01 and $18.66.
There is natural risk involved when a stock is testing a support level, since if this is broken, the stock then may fall to the next support level. In this case, First Trust Mid Cap US Equity Select ETF finds support just below today's level at $19.01. If this is broken, then the next support from accumulated volume will be at $18.66 and $18.52.
This stock may move much during a day (volatility) and with periodic low trading volume this stock is considered to be "high risk". During the last day, the stock moved $0.04 between high and low, or 0.20%. For the last week the stock has had a daily average volatility of 0.54%.
The stock is extremely overbought on RSI14 (91). Normally this will pose a good selling opportunity, but since the stock has broken the trend up the chance for a major correction due to high RSI is very small as the stock will find support at the trend broken. Since the First Trust Mid Cap US Equity Select ETF has been rising for 11 days in a row, the risk for the next couple of days has increased. As we cannot be certain with regards to the size of the reaction, we urge caution.
Our recommended stoploss: $19.60 (-4.21%) (This stock has medium daily movements and this gives medium risk. The RSI14 is 91 and this increases the risk substantially. There is a buy signal from pivot bottom found 17 days ago.)
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First Trust Mid Cap US Equity Select ETF holds several positive signals, but we still don't find these to be enough for a buy-recommendation. At the current level we recommend to hold or accumulate in this position whilst awaiting for further development.