Buy on the Dip Prospects: April 21 Edition

Here is a look at ETFs that currently offer attractive short buying opportunities.The ETFs included in this list are rated as buy candidates for two reasons. First, each of these funds is deemed to be in an uptrend based on the fact that its 50-day moving average is above its 200-day moving average, which are popular indicators for gauging medium-term and long-term trends, respectively.Second, each of these ETFs is also trading below its 20-day moving average, thereby offering a near-term “buy on the dip” opportunity given the longer-term uptrend at hand. Note that this list also features a liquidity screen by excluding ETFs with average trading volumes below the one million shares mark. As always, investors of all experience levels are advised to use stop-loss orders and practice disciplined profit-taking techniques.To get access to all premium content, sign up for a free 14-day trial to Pro.22 ETFs made it to the list of buy on the dip prospects this month. All three U.S. indices closed higher on strong economic data and earnings, as well as the continued rollout of Covid-19 vaccines.Clean energy ETFs such as the Invesco Solar ETF (TAN B) and iShares Global Clean Energy ETF (ICLN A-) featured on this month’s buy on the dip prospects list due to rising interest rates and increasing competition. Check out more about solar ETFs here.Several energy and related ETFs such as the Direxion Daily S&P Oil & Gas Exp. & Prod. Bull 3X Shares (GUSH ) and SPDR S&P Oil & Gas Exploration & Production ETF (XOP B+) featured on the list of buy on the dip prospects on the recent resurgence in Covid-19 infections and a decision by OPEC to increase crude oil production. Oil prices dipped more than 2% in the last month. The overall energy space fell by more than 6% and was the worst-performing sector. The Energy Select Sector SPDR Fund (XLE A), Direxion Daily Energy Bull 3X Shares (ERX C+), and many other energy ETFs were also present on the list.The iShares MSCI India ETF (INDA B+) was one of the buy on the dip candidates on the fears of a nation-wide lockdown.The iShares MSCI China ETF (MCHI A), which tracks the investment results of an index composed of Chinese equities available to international investors, was one of the contenders on the list over concerns about Chinese companies getting de-listed from the American exchanges.The U.S. Global Jets ETF (JETS C) also made it to the list of buy on the dip prospects as the number of Covid-19 cases continues to rise dramatically in other parts of the world.To compare this month’s list with the one published on March 24, click here.ETFs to Buy on the DipPlease note that this list is updated on a monthly basis.For more ETF analysis, make sure to sign up for our free ETF newsletter.Disclosure: No positions at time of writing.

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