Direxion Daily Utilities Bull 3X Shares ETF Forecast

Green day on Friday for Direxion Daily Utilities Bull 3X Shares
(Updated on May 03, 2024)

UTSL Signals & Forecast

Mostly positive signals in the chart today. 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 $24.11 and $22.20. 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 28.42%. Further rise is indicated until a new top pivot has been found. Furthermore, there is a buy signal from the 3 month Moving Average Convergence Divergence (MACD). 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.

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 $22.98 and $20.76. 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 $22.98. If this is broken, then the next support from accumulated volume will be at $20.76 and $19.62.

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 $0.82 between high and low, or 3.32%. For the last week, the ETF has had daily average volatility of 4.42%.

The Direxion Daily Utilities Bull 3X Shares ETF is extremely overbought on RSI14 (76). Normally this may pose a good selling opportunity but since the ETF has broken the trend up, the chance for a major correction due to high RSI is very small as the ETF will find support at the trend broken.

Our recommended stop-loss: $24.59 (-2.98%) (This ETF has medium daily movements and this gives medium risk. The RSI14 is 76 and this increases the risk substantially. There is a buy signal from a pivot bottom found 13 days ago.)

Trading Expectations (UTSL) For The Upcoming Trading Day Of Monday 6th

For the upcoming trading day on Monday, 6th we expect Direxion Daily Utilities Bull 3X Shares to open at $25.18, and during the day (based on 14 day Average True Range), to move between $24.32 and $26.38, which gives a possible trading interval of +/-$1.03 (+/-4.07%) 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 8.15% move between the lowest and the highest trading price during the day.

With no resistance above and support from accumulated volume @ $22.98, some $2.37 (9.35%) from the current price of $25.35, 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 and has broken the strong rising trend up. As the ETF is also in great technical shape we, therefore, consider it to be a good choice at these current levels and we are expecting further gains during the next 3 months.

Current score: 8.313 Strong Buy Candidate Unchanged

Predicted Opening Price for Direxion Daily Utilities Bull 3X Shares of Monday, May 6, 2024

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