Direxion Daily S&P Biotech Bear 3X ETF Forecast

Evaluation of Direxion Daily S&P Biotech Bear 3X ETF downgraded after the last trading session.
(Updated on Apr 26, 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 $10.53. On a fall, the ETF will find some support from the long-term average at approximately $8.47. 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 Thursday, April 25, 2024, and so far it has fallen -4.62%. Further fall is indicated until a new bottom pivot has been found. Volume fell together with the price during the last trading day and this reduces the overall risk as volume should follow the price movements.

Support, Risk & Stop-loss for Direxion Daily S&P Biotech Bear 3X ETF

On the downside, the ETF finds support just below today's level from accumulated volume at $9.47 and $8.34. 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, Direxion Daily S&P Biotech Bear 3X finds support just below today's level at $9.47. If this is broken, then the next support from accumulated volume will be at $8.34 and $8.29.

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 $0.92 between high and low, or 8.84%. For the last week, the ETF has had daily average volatility of 7.51%.

Our recommended stop-loss: $9.95 (-5.42%) (This ETF has very high daily movements and this gives very high risk. There is a sell signal from a pivot top found 1 day ago.)

Trading Expectations (LABD) For The Upcoming Trading Day Of Monday 29th

For the upcoming trading day on Monday, 29th we expect Direxion Daily S&P Biotech Bear 3X ETF to open at $10.71, and during the day (based on 14 day Average True Range), to move between $9.79 and $11.25, which gives a possible trading interval of +/-$0.732 (+/-6.96%) 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 13.92% move between the lowest and the highest trading price during the day.

Since the stock is closer to the resistance from accumulated volume at $10.80 (2.66%) than the support at $9.47 (9.98%), 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?

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 Direxion Daily S&P Biotech Bear 3X ETF to perform well in the short-term. Due to some small weaknesses in the technical picture we have downgraded our analysis conclusion for this ETF since the last evaluation from a Strong Buy to a Buy candidate.

Current score: 2.981 Buy Candidate Downgraded

Predicted Opening Price for Direxion Daily S&P Biotech Bear 3X ETF of Monday, April 29, 2024

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