Microsectors Us Big Banks Index 3x ETF Forecast
Explanation to Bollinger's Bands
Bollinger Bands was created by John Bollinger in the early 1980s, its purpose is to define price action relative to the assets highs and lows. This technical indicator is used to identify buy and sell signals and has proven very well in doing so.
Bollinger Bands consist of a set of three curves drawn in relation to securities prices. The middle band is a measure of the intermediate-term trend, usually a simple moving average, that serves as the base for the upper and lower bands. The interval between the upper and lower bands and the middle band is determined by volatility, typically the standard deviation of the same data that were used for the average. StockInvest.us uses Bollingers suggested 20 day average.
Middle Bollinger Band = 20-period simple moving average
Upper Bollinger Band = Middle Bollinger Band + 2 * 20-period standard deviation
Lower Bollinger Band = Middle Bollinger Band - 2 * 20-period standard deviation
BandWidth defines the current width of the band.
%b defines the current position within the band.
BandWidth = (Upper Bollinger Band - Lower Bollinger Band) / Middle Bollinger Band
%b = (Last - Lower Bollinger Band) / (Upper Bollinger Band - Lower Bollinger Band)
Live Samples:
Bottlenecks in bandwidth indicate an upcoming change. Break up through the moving average line or continuous movements above the moving average line indicate a break up, and vice versa.
Source: http://www.bollingerbands.com
Red day on Monday for Microsectors Us Big Banks Index 3x ETF after losing 3.15%
(Updated on May 06, 2024)
The Microsectors Us Big Banks Index 3x ETF price fell by -3.15% on the last day (Monday, 6th May 2024) from $22.83 to $22.11. It has now fallen 4 days in a row. During the last trading day the ETF fluctuated 2.39% from a day low at $22.07 to a day high of $22.60. The price has fallen in 7 of the last 10 days but is still up by 367.44% over the past 2 weeks. Volume has increased on the last day by 18 thousand shares but on falling prices. This may be an early warning and the risk will be increased slightly over the next couple of days. In total, 50 thousand shares were bought and sold for approximately $1.11 million.
The ETF lies in the upper part of a very 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 $24.58 will firstly indicate a stronger rate of rising. Given the current short-term trend, the ETF is expected to rise 44.89% during the next 3 months and, with a 90% probability hold a price between $7.78 and $35.61 at the end of this 3-month period.
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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
Fair opening price May 7, 2024 | Current price |
---|---|
$22.26 ( 0.676%) | $22.11 |
The predicted opening price is based on yesterday's movements between high, low, and closing price.
Trading levels for BNKD
Fibonacci Support & Resistance Levels
Level | Price | |||
---|---|---|---|---|
Resistance | R3 | 22.79 | 3.07 % | |
R2 | 22.59 | 2.15 % | ||
R1 | 22.46 | 1.59 % | ||
Current price: | 22.11 | |||
Support | S1 | 22.06 | -0.237 % | |
S2 | 21.93 | -0.80 % | ||
S3 | 21.73 | -1.71 % |
Accumulated Volume Support & Resistance Levels
Level | Price | |||
---|---|---|---|---|
Resistance | R3 | 24.08 | 8.91 % | |
R2 | 23.66 | 7.01 % | ||
R1 | 23.25 | 5.16 % | ||
Current price | 22.11 | |||
Support | S1 | 0 | . | |
S2 | 0 | . | ||
S3 | 0 | . |
FAQ
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