(PTEU) Pacer Trendpilot European - Ratings and Ratios

The Pacer Trendpilot European Index ETF (BATS:PTEU) is a dynamically managed exchange-traded fund that employs a trend-following strategy to navigate the European stock market. By investing at least 80% of its assets in the component securities of the FTSE Eurozone Index or equivalent investments, the fund aims to capture the upside of the European market while minimizing downside risk.

The funds strategy is based on a rules-based methodology that adjusts its exposure to the FTSE Eurozone Index and 3-Month U.S. Treasury bills. The allocation can be 100% to the FTSE Eurozone Index, 50% to the index and 50% to Treasury bills, or 100% to Treasury bills, depending on the prevailing market trend. This flexibility allows the fund to adapt to changing market conditions and potentially reduce volatility.

From a technical analysis perspective, the current price of $28.51 is above its 20-day and 50-day simple moving averages (SMA20: $27.17, SMA50: $27.06), indicating a positive short-term trend. The 200-day simple moving average (SMA200: $25.91) is also below the current price, suggesting a longer-term uptrend. The average true range (ATR: 0.42 = 1.48%) indicates moderate volatility. Given the current technical setup, it is likely that the fund will continue to trend upwards, potentially reaching the 52-week high of $28.59.

Fundamentally, the funds assets under management (AUM: $31.20M USD) are relatively modest, but the ETFs Europe Stock category classification suggests a specific investment niche. Considering the current technical and fundamental data, a forecast for PTEU is that it will maintain its upward trajectory, driven by the trend-following strategy and the overall market conditions. If the FTSE Eurozone Index continues to trend upwards, PTEU is likely to follow, potentially reaching new highs. However, if the trend reverses, the funds allocation to Treasury bills may help mitigate potential losses.