iShares GNMA Bond ETF (GNMA)’s Bearish Ascending Triangle Pattern Points to Higher Stock Risks

September 8, 2018 - By Lisa Delgado

The stock of iShares GNMA Bond ETF (GNMA) formed an ascending triangle with $44.92 target or 7.00 % below today’s $48.30 share price. The 6 months triangle pattern indicates high risk for the $104.38 million company. If the $44.92 price target is reached, the company will be worth $7.31M less.
The ascending triangle is a questionable performer despite its reputation as a reliable chart pattern. The ascending triangle has break even failure rate for up and down breakouts of 13% and 11%, respectively. The average rise and decline is 35% and 19%. The throwback or so called pullback rates are: 57% and 49%. The stocks meeting their targets is high for this type of breakout: 75% and 68% percent.

The ETF decreased 0.39% or $0.19 during the last trading session, reaching $48.3. About 1,451 shares traded. iShares GNMA Bond ETF (NASDAQ:GNMA) has declined 3.42% since September 8, 2017 and is downtrending. It has underperformed by 15.99% the S&P500.

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