(PUI) Invesco DWA Utilities - Ratings and Ratios

The Invesco DWA Utilities Momentum ETF (NASDAQ: PUI) is designed to track the performance of companies in the utilities sector that exhibit strong relative strength or momentum characteristics. The fund typically allocates at least 90% of its total assets to securities included in its underlying index, which is comprised of a minimum of 30 utilities companies. The index employs a momentum-based selection process, focusing on companies with strong price performance and relative strength metrics. This approach aims to capitalize on the utilities sectors defensive characteristics while incorporating a momentum-driven strategy to potentially enhance returns.

From a technical perspective, the fund is currently trading below its key moving averages, with the 20-day SMA at 40.69 and the 50-day SMA at 39.98, while the 200-day SMA is at 38.34. This indicates a bearish trend in the short to medium term. The average trading volume over the past 20 days is 3,742 shares, reflecting relatively low liquidity. The ATR of 0.52 suggests moderate price volatility. The last price of 39.08 indicates that the fund is currently trading near its 50-day SMA but below its 20-day SMA, signaling potential weakness in the near term.

Based on the technical and fundamental data, the 3-month forecast for PUI is as follows: The fund is expected to face headwinds due to its current position below its 20-day and 50-day SMAs, which may indicate ongoing weakness. However, the utilities sectors defensive nature could provide some support. The AUM of $43.87 million reflects a relatively small fund size, which may impact liquidity and trading efficiency. If the broader market experiences volatility, the funds low ATR could lead to increased price fluctuations. Overall, the outlook remains neutral to slightly bearish, with potential sideways movement or a gradual decline toward the 200-day SMA of 38.34.