ProShares UltraShort Health Care ETF Forecast

Weaker technical forecast for ProShares UltraShort Health Care as ETF downgraded to Hold/Accumulate.
(Updated on Apr 19, 2024)

RXD Signals & Forecast

The ProShares UltraShort Health Care 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 $11.57 and $10.82. 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 Wednesday, April 17, 2024, and so far it has fallen -0.525%. Further fall is indicated until a new bottom pivot has been found. ProShares UltraShort Health Care 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". The very low volume increases the risk and reduces the other technical signals issued.

Support, Risk & Stop-loss for ProShares UltraShort Health Care ETF

ProShares UltraShort Health Care finds support from accumulated volume at $11.60 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.

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 $0.0797 between high and low, or 0.689%. For the last week, the ETF has had daily average volatility of 1.32%.

The ProShares UltraShort Health Care 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: $11.33 (-2.45%) (This ETF has medium daily movements and this gives medium risk. The RSI14 is 87 and this increases the risk substantially. There is a sell signal from a pivot top found 2 days ago.)

Trading Expectations (RXD) For The Upcoming Trading Day Of Monday 22nd

For the upcoming trading day on Monday, 22nd we expect ProShares UltraShort Health Care to open at $11.61, and during the day (based on 14 day Average True Range), to move between $11.44 and $11.80, which gives a possible trading interval of +/-$0.179 (+/-1.54%) up or down from last closing price. If ProShares UltraShort Health Care takes out the full calculated possible swing range there will be an estimated 3.08% move between the lowest and the highest trading price during the day.

Since the stock is closer to the resistance from accumulated volume at $11.63 (0.10%) than the support at $11.60 (0.16%), 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 ProShares UltraShort Health Care ETF A Buy?

ProShares UltraShort Health Care 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: 0.918 Hold/Accumulate Downgraded

Predicted Opening Price for ProShares UltraShort Health Care of Monday, April 22, 2024

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