Wisdomtree S&p 500 3x Daily Leveraged ETF Forecast
Wisdomtree S&p 500 3x Daily Leveraged ETF downgraded from Buy Candidate to Hold/Accumulate after Friday trading session.
(Updated on Jun 28, 2024)
The Wisdomtree S&p 500 3x Daily Leveraged ETF price gained 1.89% on the last trading day (Friday, 28th Jun 2024), rising from $97.59 to $99.43. During the last trading day the ETF fluctuated 1.34% from a day low at $99.39 to a day high of $100.72. The price has risen in 5 of the last 10 days and is up by 3.94% over the past 2 weeks. Volume has increased on the last day along with the price, which is a positive technical sign, and, in total, 260 more shares were traded than the day before. In total, 260 shares were bought and sold for approximately $25.85 thousand.
The ETF lies in the upper part of a wide and strong rising trend in the short term, and this may normally pose a very good selling opportunity for the short-term trader as reaction back towards the lower part of the trend can be expected. A break-up at the top trend line at $101.00 will firstly indicate a stronger rate of rising. Given the current short-term trend, the ETF is expected to rise 20.98% during the next 3 months and, with a 90% probability hold a price between $107.75 and $122.18 at the end of this 3-month period.
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3USL.L Signals & Forecast
The Wisdomtree S&p 500 3x Daily Leveraged 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 $98.43 and $92.19. A breakdown below any of these levels will issue sell signals. Furthermore, there is a buy signal from the 3 month Moving Average Convergence Divergence (MACD). Wisdomtree S&p 500 3x Daily Leveraged has increased volume and follows the last lift in the price. This is considered to be a technical positive sign as volume should follow the price-formation. The very low volume increases the risk and reduces the other technical signals issued. Some negative signals were issued as well, and these may have some influence on the near short-term development. A sell signal was issued from a pivot top point on Thursday, June 20, 2024, and so far it has fallen -0.0904%. Further fall is indicated until a new bottom pivot has been found.
Support, Risk & Stop-loss for Wisdomtree S&p 500 3x Daily Leveraged ETF
On the downside, the ETF finds support just below today's level from accumulated volume at $85.57 and $83.14. There is a natural risk involved when a ETF is testing a support level, since if this is broken, the ETF then may fall to the next support level. In this case, Wisdomtree S&p 500 3x Daily Leveraged finds support just below today's level at $85.57. If this is broken, then the next support from accumulated volume will be at $83.14 and $79.56.
This ETF has average movements during the day and with good trading volume, the risk is considered to be medium. During the last day, the ETF moved $1.33 between high and low, or 1.34%. For the last week, the ETF has had daily average volatility of 1.06%.
The Wisdomtree S&p 500 3x Daily Leveraged 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. 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: $95.92 (-3.53%) (This ETF has medium daily movements and this gives medium risk. The RSI14 is 76 and this increases the risk substantially. There is a sell signal from a pivot top found 45 days ago.)
Trading Expectations (3USL.L) For The Upcoming Trading Day Of Monday 1st
For the upcoming trading day on Monday, 1st we expect Wisdomtree S&p 500 3x Daily Leveraged to open at $99.85, and during the day (based on 14 day Average True Range), to move between $97.52 and $101.33, which gives a possible trading interval of +/-$1.90 (+/-1.91%) up or down from last closing price. If Wisdomtree S&p 500 3x Daily Leveraged takes out the full calculated possible swing range there will be an estimated 3.82% move between the lowest and the highest trading price during the day.
Since the stock is closer to the resistance from accumulated volume at $99.52 (0.09%) than the support at $85.57 (13.94%), our systems don't find the trading risk/reward intra-day attractive and any bets should be held until the stock is closer to the support level.
Is Wisdomtree S&p 500 3x Daily Leveraged ETF A Buy?
Wisdomtree S&p 500 3x Daily Leveraged holds several positive signals, but we still don't find these to be enough for a buy candidate. At the current level, it should be considered as a hold candidate (hold or accumulate) in this position whilst awaiting further development. Due to some small weaknesses in the technical picture we have downgraded our analysis conclusion for this ETF since the last evaluation from a Buy to a Hold/Accumulate candidate.
Current score: 0.000 Hold/Accumulate Downgraded
Zero in score indicates that our system is expecting high volatility and risk for the following trading day. Given the latest developments, we cannot determine the next direction as it may go both ways.
Predicted Opening Price for Wisdomtree S&p 500 3x Daily Leveraged of Monday, July 1, 2024
| Fair opening price July 1, 2024 | Current price |
|---|---|
| $99.85 ( 0.422%) | $99.43 |
The predicted opening price is based on yesterday's movements between high, low, and closing price.
Trading levels for 3USL.L
Fibonacci Support & Resistance Levels
| Level | Price | |
|---|---|---|
| R3 | 101.18 | 1.76% |
| R2 | 100.67 | 1.25% |
| R1 | 100.35 | 0.93% |
| Price | 99.43 | |
| S1 | 99.34 | -0.0886% |
| S2 | 99.02 | -0.404% |
| S3 | 98.52 | -0.92% |
Accumulated Volume Support & Resistance Levels
| Level | Price | |
|---|---|---|
| R3 | 0 | - |
| R2 | 0 | - |
| R1 | 99.52 | 0.0905% |
| Price | 99.43 | |
| S1 | 85.57 | -13.94% |
| S2 | 83.14 | -16.38% |
| S3 | 79.56 | -19.98% |
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