(QJUN) First Trust Exchange-Traded - Ratings and Ratios

The First Trust Exchange-Traded Fund VIII - FT Cboe Vest Growth-100 Buffer ETF - June (BATS:QJUN) is a Defined Outcome ETF that employs a hedging strategy to provide a buffer against potential losses in the underlying asset. Under normal market conditions, the fund invests substantially all of its assets in FLexible EXchange Options (FLEX Options) that reference the price performance of the Invesco QQQ Trust, Series 1, a popular ETF tracking the Nasdaq-100 Index.

This investment strategy allows QJUN to benefit from the potential upside of the Nasdaq-100 Index while mitigating potential losses through the buffer provided by the FLEX Options. The buffer is designed to absorb a certain level of losses, thereby reducing the overall risk of the investment. As a non-diversified fund, QJUNs investment strategy is highly focused on the performance of the underlying ETF, making it an attractive option for investors seeking targeted exposure to the Nasdaq-100 Index.

Analyzing the technical data, we observe that QJUNs price is currently at $29.48, above its 20-day SMA of $28.97 and 50-day SMA of $27.93, indicating a positive short-term trend. The 200-day SMA of $27.66 further supports the notion of an overall upward trend. With an ATR of 0.30, representing a 1.02% daily price movement, the funds volatility is relatively moderate. Given the current price being at its 52-week high, we can anticipate a potential consolidation or a slight pullback. However, considering the underlying ETFs historical performance and the overall market conditions, we forecast that QJUN will continue to trade within a narrow range, potentially between $28.50 and $30.50, over the next few weeks.

Combining the technical analysis with fundamental data, we note that QJUNs AUM stands at $572.99M USD, indicating a reasonable level of investor interest. As the funds investment strategy is closely tied to the performance of the Nasdaq-100 Index, we expect QJUNs price movement to be influenced by the overall trend of the technology-heavy index. With the Nasdaq-100 Index exhibiting a strong upward trend in recent times, we anticipate QJUN to continue benefiting from this trend, potentially leading to further price appreciation. However, investors should be cautious of potential market downturns and the funds non-diversified nature, which may amplify losses if the underlying ETF experiences a significant decline.