Microsectors Us Big Banks Index 3x ETF Forecast

Red day on Monday for Microsectors Us Big Banks Index 3x ETF after losing 3.15%
(Updated on May 06, 2024)

BNKD Signals & Forecast

The Microsectors Us Big Banks Index 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 $20.53 and $8.07. 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). 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 Tuesday, April 30, 2024, and so far it has fallen -8.18%. Further fall is indicated until a new bottom pivot has been found. Microsectors Us Big Banks Index 3x gained volume on the last day, but on falling prices. In technical terms, this is called divergence and may be an early warning. In some cases, increasing volume on falling prices may be considered positive, but that is mainly in typical "sell-offs".

Support, Risk & Stop-loss for Microsectors Us Big Banks Index 3x ETF

There is no support from accumulated volume below today's level and given the right condition the ETF may perform very badly in the next couple of days.

This ETF may move very much during the day (volatility) and with a very large prediction interval from the Bollinger Band this ETF is considered to be "very high risk". During the last day, the ETF moved $0.528 between high and low, or 2.39%. For the last week, the ETF has had daily average volatility of 3.78%.

The Microsectors Us Big Banks Index 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. 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: $21.17 (-4.26%) (This ETF has very high daily movements and this gives very high risk. The RSI14 is 87 and this increases the risk substantially. There is a sell signal from a pivot top found 4 days ago.)

Trading Expectations (BNKD) For The Upcoming Trading Day Of Tuesday 7th

For the upcoming trading day on Tuesday, 7th we expect Microsectors Us Big Banks Index 3x Inverse Leveraged Etns to open at $22.26, and during the day (based on 14 day Average True Range), to move between $20.72 and $23.50, which gives a possible trading interval of +/-$1.39 (+/-6.27%) up or down from last closing price. If Microsectors Us Big Banks Index 3x Inverse Leveraged Etns takes out the full calculated possible swing range there will be an estimated 12.55% move between the lowest and the highest trading price during the day.

With no support below and resistance from accumulated volume @ $23.25, some $1.14 (5.16%) from the current price of $22.11, our system finds the risk reward not very attractive.

Is Microsectors Us Big Banks Index 3x Inverse Leveraged Etns ETF A Buy?

Several short-term signals, along with a general good trend, are positive and we conclude that the current level may hold a buying opportunity as there is a fair chance for Microsectors Us Big Banks Index 3x ETF to perform well in the short-term.

Current score: 2.561 Buy Candidate Unchanged

Predicted Opening Price for Microsectors Us Big Banks Index 3x Inverse Leveraged Etns of Tuesday, May 7, 2024

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