(FTWO) EA Series Trust - Ratings and Ratios

The EA Series Trust (NYSE ARCA: FTWO) is an exchange-traded fund designed to replicate the performance of an index focused on companies involved in national security and natural resource security, as defined by Bloomberg. The fund primarily invests in large- and mid-capitalization companies operating in these sectors. Under normal market conditions, at least 80% of the funds net assets, plus borrowings for investment purposes, are allocated to the Natural Resources and Security Sectors. The fund is classified as non-diversified, meaning it may concentrate its investments in fewer industries, which can lead to higher volatility compared to diversified funds.

From a technical standpoint, FTWO has shown mixed momentum indicators. The SMA 20 of 31.26 and SMA 50 of 30.94 suggest recent price weakness relative to its short-term averages, while the SMA 200 of 29.82 indicates the fund is trading slightly above its long-term average. The ATR of 0.54 reflects moderate price volatility. Average daily trading volume of 14,206 shares over the past 20 days points to limited liquidity, which may impact execution for larger trades.

Fundamentally, FTWO has assets under management (AUM) of $24.33 million, which is relatively small compared to other sector-specific ETFs. This smaller AUM may result in higher expense ratios and less negotiating power for the fund manager when transacting securities.

3-Month Forecast: Based on technical and fundamental analysis, FTWO is expected to trade within a range of $29.50 to $31.50 over the next three months. Support levels are likely to be tested near $29.50, aligning with the SMA 200, while resistance may form near $31.50, close to the SMA 20. The funds performance will likely be influenced by geopolitical developments and commodity price movements, given its sector focus.