(RCD) Invesco SP500 Equal Weight - Ratings and Ratios

The Invesco S&P 500 Equal Weight Consumer Discretionary ETF (NYSE ARCA: RCD) is designed to track the performance of the S&P 500 Consumer Discretionary Index, which includes companies classified under the consumer discretionary sector according to the Global Industry Classification Standard (GICS). The fund invests at least 90% of its total assets in securities that comprise the underlying index, which includes common stocks of all companies in the S&P 500 Index that are categorized under the consumer discretionary sector. This sector encompasses industries such as retail, automotive, hotels, and leisure, among others.

From a technical perspective, the ETF is currently trading at $24.79, with a 20-day moving average of $25.23, indicating a slight dip below its recent average. The 50-day moving average stands at $26.88, while the 200-day moving average is $44.29, reflecting a broader downtrend over the past year. The Average True Range (ATR) of 0.16 suggests relatively low volatility. The funds average daily trading volume over the past 20 days is 25,549 shares, indicating moderate liquidity.

Fundamentally, the ETF has assets under management (AUM) of $342.24 million, making it a mid-sized fund within its category. The consumer discretionary sector is sensitive to economic cycles, with performance often correlating with consumer confidence and spending trends. The equal-weight approach of the fund ensures that each constituent in the index has a similar influence on the portfolio, unlike market-capitalization-weighted indices.

Based on the technical and fundamental data, the three-month forecast for RCD suggests a continuation of the current downtrend, with potential resistance at the 50-day moving average of $26.88. The low ATR indicates that price movements are likely to remain muted, with limited upside potential in the near term. Support levels may be tested near the 200-day moving average of $44.29, though this level is significantly above the current price, suggesting a potential gap in near-term support.