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TMF Stock Shows Decline and High Volatility, Raises Uncertainty for Investors

StockInvest.us, 1 month ago

StockInvest.us Introduction

Direxion Daily 20+ Year Treasury Bull 3X Shares (TMF) closed at last at $3.89 on October 19, 2023. This marked a decline of $0.26 or -6.27% on the day. The stock has significant variation within the daily trading range, with the low standing at $3.88 to a high point of $4.15. On a yearly perspective, TMF ranged between $3.88 to a high peak of $10.3. The stock traded with a volume of 33.53 million, underscoring a slightly lower activity than its standard volume, which is averaged at 33.87 million.

Technical Analysis

The 14-day Relative Strength Index (RSI) valued at 34 suggests that the stock might be nearing oversold territory, implying potential for recovery in the short term. The Moving Average Convergence Divergence (MACD) for the past three months stands at -0.52, suggesting a current bearish trend.

Furthermore, the stock's 50-day moving average stands at $5.37, and the 200-day moving average is at $7.49. This divergence between the short-term and the long-term averages typically implies a downtrend. The stock presently has no registered support level and resistance is set at $4.4, establishing a crucial point to surpass for a momentum shift.

The price range based on the Average True Range (ATR) of 6.38 signifies high volatility – a potential warning flag for risk-averse investors.

Fundamental Analysis

Direxion Daily 20+ Year Treasury Bull 3X Shares TMF's market capitalization, earnings per share (EPS), and shares outstanding ring in at zero. Furthermore, the stock curiously presents with no Price to Earnings (PE) ratio. These elements provide little insight into the firm's fundamentals and contribute to difficulty in assessing its intrinsic value. The stock is listed on the AMEX exchange.

Stock Performance Prediction

With current technical indicators, the stock seems to be in a bearish trend, and it may extend this trend into the next trading day, October 20, 2023. However, the nearing oversold condition might trigger a temporary rebound in subsequent sessions. The volatility suggested by the ATR could lead to considerable price swings in the short term, yet the direction of these swings is challenging to forecast going solely off current indicators.

For the upcoming week, the stock might continue the downward trajectory unless it breaches the resistance level of $4.4. Breaking this resistance could potentially reverse the present trend and spark a short rally.


THF's current technical and fundamental standings denote a significant degree of uncertainty and volatility. Lacking a support level and essential fundamental figures, this stock is challenging to evaluate accurately. Analyzing from a technical perspective with the current downtrend, TMF could be viewed as a potential Sell. However, the nearing oversold condition might also lead to short-term rebound opportunities, making this stock a potential for Hold for risk-tolerant investors. Regrettably, the absence of crucial fundamental data makes it tough to justify a Buy rating. Therefore, the final verdict would tilt towards a Hold/Sell.

It's important to note that this analysis is based solely on the provided data and should not be construed as a guarantee of future performance. It’s strongly suggested that investors conduct their own research and evaluation before making any investment decisions.

Check full Direxion Daily 20+ Year Treasury Bull 3X Shares forecast and analysis here.