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Released on Monday, October 24, 2011, 8:00 AM ET
Pittsburgh, PA (SpeculatingStocks) - Looking for an interesting trade out there? Well we have got one for you! Known by its investors as “the Fund”, Fiduciary Claymore MLP Opportunity Fund (NYSE:FMO) is certainly interesting.
The fund is an investment holding in a non-diversified portfolio and is advised by the Guggenheim Funds Investment Advisors. Looking through the fund, you will actually find there is little information about it, which can make it very risky.
But just recently in August of 2011 the stock was moved to an outperform status from a previously low rating by market analyst, which has caused the fast stochastic and RSI indicators to show overbought status for the past several months. However, both technical indicators will cause false positives in an up-trending stock.
FMO is currently trading at $20.07 per share (4:00 PM EDT, October 21st, 2011). The stock pays a quarterly dividend of about 35.5¢ which it just recently declared on October 12th, 2011—so if you like the stock and get in you could realize an automatic gain. The stocks total annual dividend yield tops out at about 7.36%, which is fairly decent.
Right now the stock is trading above its 5-day resistance of $19.19 per share, so a small break out reaching up to the 15-day resistance of $19.70 per share could be occurring, that being said the current 5-day support is relatively meaningless as the stock as moved out of the trend; regardless its 5-day support is $18.77 per share with a 15-day support of $18.26. Which makes this an interesting playable option; Bollinger bands have pinched together recently, so expect some new volatility in the stock, but all around a fair game.
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