Direxion Daily S&P Biotech Bear 3X ETF Forecast

Weaker technical forecast for Direxion Daily S&P Biotech Bear 3X as ETF downgraded to Hold/Accumulate.
(Updated on Apr 23, 2024)

LABD Signals & Forecast

The Direxion Daily S&P Biotech Bear 3X ETF holds a sell signal from the short-term Moving Average; at the same time, however, there is a buy signal from the long-term average. Since the short-term average is above the long-term average there is a general buy signal in the ETF giving a positive forecast for the stock. On further gains, the ETF will meet resistance from the short-term Moving Average at approximately $10.16. On a fall, the ETF will find some support from the long-term average at approximately $8.11. A break-up through the short-term average will send a buy signal, whereas a breakdown through the long-term average will send a sell signal. 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 Friday, April 19, 2024, and so far it has fallen -6.76%. Further fall is indicated until a new bottom pivot has been found. Volume rose on falling prices yesterday. This may be an early warning and the ETF should be followed more closely.

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 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 $0.750 between high and low, or 7.90%. For the last week, the ETF has had daily average volatility of 8.07%.

Our recommended stop-loss: $9.60 (-4.64%) (This ETF has very high daily movements and this gives very high risk. There is a sell signal from a pivot top found 2 days ago.)

Trading Expectations (LABD) For The Upcoming Trading Day Of Wednesday 24th

For the upcoming trading day on Wednesday, 24th we expect Direxion Daily S&P Biotech Bear 3X ETF to open at $9.93, and during the day (based on 14 day Average True Range), to move between $9.37 and $10.77, which gives a possible trading interval of +/-$0.700 (+/-6.95%) 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 13.90% move between the lowest and the highest trading price during the day.

Since the stock is closer to the resistance from accumulated volume at $10.08 (0.10%) than the support at $9.90 (1.69%), 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 Direxion Daily S&P Biotech Bear 3X ETF ETF A Buy?

Direxion Daily S&P Biotech Bear 3X 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: 0.028 Hold/Accumulate Downgraded

Predicted Opening Price for Direxion Daily S&P Biotech Bear 3X ETF of Wednesday, April 24, 2024

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