Direxion Daily Utilities Bull 3X Shares ETF Forecast
Weaker technical forecast for Direxion Daily Utilities Bull 3X Shares as ETF downgraded to Hold/Accumulate.
(Updated on Apr 25, 2024)
The Direxion Daily Utilities Bull 3X Shares ETF price gained 0.93% on the last trading day (Thursday, 25th Apr 2024), rising from $23.62 to $23.84. It has now gained 7 days in a row. It is not often that ETFS manage to gain so many days in a row, and falls for a day or two should be expected. During the last trading day the ETF fluctuated 5.39% from a day low at $22.81 to a day high of $24.04. The price has risen in 7 of the last 10 days and is up by 9.91% over the past 2 weeks. Volume fell on the last day by -11 thousand shares and in total, 123 thousand shares were bought and sold for approximately $2.92 million. You should take into consideration that falling volume on higher prices causes divergence and may be an early warning about possible changes over the next couple of days.
The ETF lies in the upper part of a 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 $24.01 will firstly indicate a stronger rate of rising. Given the current short-term trend, the ETF is expected to rise 26.13% during the next 3 months and, with a 90% probability hold a price between $25.61 and $30.29 at the end of this 3-month period.
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UTSL Signals & Forecast
The Direxion Daily Utilities Bull 3X Shares 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 $22.58 and $21.60. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Tuesday, April 16, 2024, and so far it has risen 20.77%. Further rise is indicated until a new top pivot has been found. Volume fell during the last trading day despite gaining prices. This causes a divergence between volume and price and it may be an early warning. The ETF should be watched closely. Some negative signals were issued as well, and these may have some influence on the near short-term development. Furthermore, there is currently a sell signal from the 3 month Moving Average Convergence Divergence (MACD).
Support, Risk & Stop-loss for Direxion Daily Utilities Bull 3X Shares ETF
On the downside, the ETF finds support just below today's level from accumulated volume at $20.76 and $19.62. 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 Utilities Bull 3X Shares finds support just below today's level at $20.76. If this is broken, then the next support from accumulated volume will be at $19.62 and $18.88.
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 $1.23 between high and low, or 5.39%. For the last week, the ETF has had daily average volatility of 5.17%.
Since the Direxion Daily Utilities Bull 3X Shares has been rising for 7 days in a row, the risk over the next couple of days has increased. As we cannot be certain with regards to the size of the reaction, we urge caution.
Our recommended stop-loss: $23.05 (-3.30%) (This ETF has medium daily movements and this gives medium risk. There is a buy signal from a pivot bottom found 7 days ago.)
Trading Expectations (UTSL) For The Upcoming Trading Day Of Friday 26th
For the upcoming trading day on Friday, 26th we expect Direxion Daily Utilities Bull 3X Shares to open at $23.56, and during the day (based on 14 day Average True Range), to move between $22.80 and $24.88, which gives a possible trading interval of +/-$1.04 (+/-4.34%) up or down from last closing price. If Direxion Daily Utilities Bull 3X Shares takes out the full calculated possible swing range there will be an estimated 8.69% move between the lowest and the highest trading price during the day.
With no resistance above and support from accumulated volume @ $20.76, some $3.08 (12.92%) from the current price of $23.84, our system finds the risk reward attractive.
Is Direxion Daily Utilities Bull 3X Shares ETF A Buy?
Direxion Daily Utilities Bull 3X Shares 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 Strong Buy to a Hold/Accumulate candidate.
Current score: 0.000 Hold/Accumulate Downgraded
Zero in score indicates that our system is expecting high volatility and risk for the following trading day. Given the latest developments, we cannot determine the next direction as it may go both ways.
Predicted Opening Price for Direxion Daily Utilities Bull 3X Shares of Friday, April 26, 2024
| Fair opening price April 26, 2024 | Current price |
|---|---|
| $23.56 ( 1.16%) | $23.84 |
The predicted opening price is based on yesterday's movements between high, low, and closing price.
Trading levels for UTSL
Fibonacci Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 24.79 | 4.00 % | |
| R2 | 24.32 | 2.03 % | ||
| R1 | 24.03 | 0.81 % | ||
| Current price: | 23.84 | |||
| Support | S1 | 23.09 | -3.13 % | |
| S2 | 22.80 | -4.35 % | ||
| S3 | 22.33 | -6.32 % |
Accumulated Volume Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 0 | . | |
| R2 | 0 | . | ||
| R1 | 0 | . | ||
| Current price | 23.84 | |||
| Support | S1 | 20.76 | -12.92% | |
| S2 | 19.62 | -17.70% | ||
| S3 | 18.88 | -20.81% |
UTSL Dividend Payout History
| # | Ex-Date | Pay Date | Amount | Yield | |
|---|---|---|---|---|---|
| 1 | Jan 18, 2024 | Mar 19, 2024 | Mar 26, 2024 | $0.147 | 0.713% |
| 2 | Dec 21, 2023 | Dec 21, 2023 | Dec 21, 2023 | $0.189 | 0.93% |
| 3 | Feb 17, 2023 | Sep 19, 2023 | Sep 26, 2023 | $0.144 | 0.716% |
| 4 | Feb 17, 2023 | Jun 21, 2023 | Jun 28, 2023 | $0.122 | 0.498% |
| 5 | Feb 17, 2023 | Mar 21, 2023 | Mar 28, 2023 | $0.309 | 1.16% |
FAQ
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