Fidelity Blue Chip Growth ETF

The Fund seeks long-term growth of capital. The Fund invests 80% of assets in blue chip companies which have large or medium capitalizations. The Fund invests primarily in equity securities that have above-average growth potential or "growth" stocks. The Fund uses fundamental analysis of factors to select investments.

Technical Observation (on the weekly chart): 

FBCG's recent price action has been characterized by a significant uptrend, but it has begun to decline with increased volume after reaching a key resistance zone. This decline is accompanied by a divergence between the stock's price and its momentum indicators, suggesting a potential reversal in the near term. The 14-day Relative Strength Index (RSI) has started to reverse from its overbought territory and may continue to decline towards its midpoint. Despite this, FBCG is currently trading above its 21-day and 50-day Simple Moving Averages (SMA), which could serve as immediate support levels in the near term. Furthermore, these SMAs have historically provided a strong foundation for the stock's price, potentially cushioning any further declines. As such, it is likely that FBCG will find support at these levels, allowing it to consolidate before resuming its upward trajectory.

Individuals can evaluate the ETF based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the ETFs has not been considered in the decision-making process. Other factors which could impact the ETF prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

How to Read the Charts?

The yellow colour line reflects the 21-period simple moving average (SMA) while the blue line indicates the 50- period simple moving average (SMA). SMA helps to identify existing price trends. If the prices are trading above the 21-period and 50-period moving average, then it shows prices are currently trading in a bullish trend.

The orange colour line in the chart’s lower segment reflects the Relative Strength Index (14-Period) which indicates price momentum and signals momentum in trend. A reading of 70 or above suggests overbought status while a reading of 30 or below suggests an oversold status.

The red and green colour bars in the chart’s lower segment show the volume of the ETF. The volume is the number of shares that changed hands during a given day. ETFs with high volumes are more liquid than ETFs with lesser volume as liquidity in ETFs helps with easier and faster execution of the order.

The Orange colour lines are the trend lines drawn by connecting two or more price points and used for trend identification purposes. The trend line also acts as a line of support and resistance.

Technical Indicators Defined: -

Support: A level at which the ETF prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the ETF and if the price breaches the level, then Support 2 may act as the crucial support level for the ETF. 

Resistance: A level at which the ETF prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the ETF and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the ETF. 

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the ETF prices. 

Past performance is neither an indicator nor a guarantee of future performance. 

The reference date for all price data, currency, technical indicators, support, and resistance levels is Jul 18, 2024 (10:05 am PDT). The reference data in this report has been partly sourced from REFINITIV. 

Abbreviations

CMP: Current Market Price

SMA: Simple Moving Average

RSI: Relative Strength Index

USD: United States dollar 

Note: Trading decisions require a thorough analysis by individual. Technical reports in general chart out metrics that may be assessed by individuals before any ETF evaluation. The above are illustrative analytical factors used for evaluating ETFs; other parameters can be looked at along with additional risks per se. Past performance is neither an indicator nor a guarantee of future performance.