Momentum ETF MTUM is doing well

From mid-April till the beginning of June, MTUM – the iShares MSCI USA Momentum Factor ETF – was moving almost horizontally between 110 and 115 in a range shown in the blue box.

During this trendless regime price touched its 50-day exponential moving average twice before the bulls decided to move price up.

This regime suddenly changed as MTUM quickly moved above the upper limit of the box, at about 115 and reached the upper Bollinger Band. As we can see in the orange box, price quickly moved along a steep upper Bollinger Band and well above its rising 10-day exponential moving average.

Of course, this change in the market condition and the upward momentum has been depicted in MACD, which turned up and above its 20-day exponential moving average.

Just as important, MTUM’s Relative Strength also started moving up and above its rising 20-day exponential moving average.