(RSHO) Tema Trust - Ratings and Ratios

The Tema ETF Trust (NYSE ARCA:RSHO) is an exchange-traded fund that focuses on investing in companies involved in the reshoring of economic activities, aiming to revitalize the US industrial base. By targeting companies directly or indirectly tied to this trend, the fund provides investors with exposure to the potential growth of the US manufacturing sector.

The funds investment strategy involves allocating at least 80% of its net assets to common and preferred stocks of US-listed companies that benefit from the reshoring phenomenon. This includes companies involved in rebuilding, revitalizing, and bringing back overseas economic activity to the US. As a non-diversified fund, RSHO is more concentrated in its investments, which can result in higher volatility.

From a technical standpoint, the funds recent price action indicates a bullish trend, with the last price of $37.64 exceeding its 20-day and 50-day simple moving averages (SMA20 and SMA50) of $34.78 and $34.29, respectively. The 200-day simple moving average (SMA200) at $36.94 suggests that the fund has broken through a significant resistance level. The average true range (ATR) of 1.08, equivalent to 2.87% of the last price, indicates moderate volatility.

Combining technical and fundamental analysis, we can forecast that RSHO may continue its upward trend if the reshoring trend persists. With the US governments initiatives to boost domestic manufacturing and infrastructure development, companies tied to reshoring are likely to benefit. The funds AUM of $135.78M USD indicates a relatively small but growing investor base. If the trend continues, RSHO may test its 52-week high of $41.55. However, investors should be cautious of potential volatility and monitor the funds price action relative to its moving averages and ATR.

Based on the available data, a potential trading strategy could involve monitoring RSHOs price action for a sustained break above its 52-week high, or a pullback to its SMA50 or SMA200, which could present buying opportunities. Conversely, a decline below the SMA50 could indicate a reversal of the trend, warranting a reevaluation of the investment thesis.