(PXI) Invesco DWA Energy Momentum - Ratings and Ratios

The Invesco DWA Energy Momentum ETF (NASDAQ:PXI) is an actively managed exchange-traded fund that focuses on capitalizing on the momentum within the energy sector. By investing at least 90% of its total assets in securities comprising its underlying index, PXI provides a diversified portfolio of energy companies that exhibit strong relative strength or momentum characteristics.

The underlying index is constructed to include a minimum of 30 securities from the energy sector, selected based on their momentum. This approach allows PXI to potentially benefit from the upward trend in the energy sector by concentrating on companies that are demonstrating powerful price momentum. The funds strategy is centered around the idea that companies with high momentum are likely to continue outperforming their peers.

Analyzing the current market conditions and the funds characteristics, we can infer that PXI is positioned to capitalize on the energy sectors potential upside. With its focus on momentum, the fund is likely to be overweight in companies that are experiencing significant price movements, potentially driven by fundamental factors such as increased demand, supply chain disruptions, or technological advancements.

By examining the and , we can forecast that PXI is likely to experience a bullish trend if the energy sector continues to demonstrate strength. The current SMA20 and SMA50 being below the Last Price indicates a short-term uptrend. However, the SMA200 being above the Last Price suggests that the long-term trend is still bearish. Considering the ATR, the volatility is relatively moderate, indicating a potential for continued price movements. With an AUM of $46.39M USD, the fund has a reasonable size to be considered for investment.

Forecasting the future performance of PXI, we can expect the fund to potentially benefit from a continued uptrend in the energy sector. If the current momentum continues, PXI may experience a price increase, potentially targeting the 52W High of $51.28. However, if the long-term bearish trend reasserts itself, the fund may face a correction, potentially finding support around the SMA50 or SMA20 levels. A thorough analysis of the underlying index constituents and market conditions will be necessary to confirm this forecast.