Direxion Daily S&P Biotech Bear 3X ETF Forecast

Direxion Daily S&P Biotech Bear 3X ETF downgraded from Strong Buy Candidate to Buy Candidate after Wednesday trading session.
(Updated on Apr 17, 2024)

LABD Signals & Forecast

Mostly positive signals in the chart today. The Direxion Daily S&P Biotech Bear 3X ETF holds buy signals from both short and long-term Moving Averages giving a positive forecast for the stock. Also, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average. On corrections down, there will be some support from the lines at $9.00 and $7.63. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Tuesday, February 27, 2024, and so far it has risen 70.85%. Further rise is indicated until a new top pivot has been found. Furthermore, there is a buy signal from the 3 month Moving Average Convergence Divergence (MACD). Volume is rising along with the price. This is considered to be a good technical signal.

Support, Risk & Stop-loss for Direxion Daily S&P Biotech Bear 3X ETF

Direxion Daily S&P Biotech Bear 3X finds support from accumulated volume at $9.90 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.

This ETF may move much during the day (volatility) and with a large prediction interval from the Bollinger Band this ETF is considered to be "high risk". During the last day, the ETF moved $0.599 between high and low, or 6.28%. For the last week, the ETF has had daily average volatility of 7.77%.

The Direxion Daily S&P Biotech Bear 3X ETF is overbought on RSI14 and lies in the upper part of the trend. Normally this may pose a good selling opportunity for the short-term trader, but some ETFS may go long and hard while being overbought and the RSI is still moving upwards. Regardless, the high RSI together with the trend position increases the risk and higher daily movements (volatility) should be expected. A correction down in the nearby future seems very likely, and it is of great importance that the ETF manages to break the trend before that occurs.

Our recommended stop-loss: $9.73 (-3.44%) (This ETF has high daily movements and this gives high risk. The RSI14 is 78 and this increases the risk substantially. There is a buy signal from a pivot bottom found 35 days ago.)

Trading Expectations (LABD) For The Upcoming Trading Day Of Thursday 18th

For the upcoming trading day on Thursday, 18th we expect Direxion Daily S&P Biotech Bear 3X ETF to open at $9.91, and during the day (based on 14 day Average True Range), to move between $9.45 and $10.71, which gives a possible trading interval of +/-$0.633 (+/-6.28%) up or down from last closing price. If Direxion Daily S&P Biotech Bear 3X ETF takes out the full calculated possible swing range there will be an estimated 12.56% move between the lowest and the highest trading price during the day.

Since the stock is closer to the support from accumulated volume at $9.90 (1.79%) than the resistance at $10.29 (2.08%), our systems sees the trading risk/reward intra-day as attractive and believe profit can be made before the stock reaches first resistance..

Is Direxion Daily S&P Biotech Bear 3X ETF ETF A Buy?

Several short-term signals are positive, despite the ETF being in a falling trend, we conclude that the current level may hold a buying opportunity as there is a fair chance for ETF to perform well in the short-term. Due to some small weaknesses in the technical picture we have downgraded our analysis conclusion for this ETF since the last evaluation from a Strong Buy to a Buy candidate.

Current score: 4.000 Buy Candidate Downgraded

Predicted Opening Price for Direxion Daily S&P Biotech Bear 3X ETF of Thursday, April 18, 2024

The predicted opening price is based on yesterday's movements between high, low, and closing price.