Direxion Daily S&P Biotech Bear 3X ETF Forecast

Green day on Thursday for Direxion Daily S&P Biotech Bear 3X
(Updated on Apr 18, 2024)

LABD Signals & Forecast

Mostly positive signals in the chart today. The Direxion Daily S&P Biotech Bear 3X 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 $9.35 and $7.75. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Tuesday, February 27, 2024, and so far it has risen 78.31%. 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 S&P Biotech Bear 3X ETF

On the downside, the ETF finds support just below today's level from accumulated volume at $9.90 and $9.77. 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 $9.90. If this is broken, then the next support from accumulated volume will be at $9.77 and $9.47.

This ETF may move much during the day (volatility) and with a large prediction interval from the Bollinger Band this ETF is considered to be "high risk". During the last day, the ETF moved $0.560 between high and low, or 5.59%. For the last week, the ETF has had daily average volatility of 7.67%.

The Direxion Daily S&P Biotech Bear 3X 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 and the RSI is still moving upwards. 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: $10.21 (-2.90%) (This ETF has high daily movements and this gives high risk. The RSI14 is 80 and this increases the risk substantially. There is a buy signal from a pivot bottom found 36 days ago.)

Trading Expectations (LABD) For The Upcoming Trading Day Of Friday 19th

For the upcoming trading day on Friday, 19th we expect Direxion Daily S&P Biotech Bear 3X ETF to open at $10.37, and during the day (based on 14 day Average True Range), to move between $9.89 and $11.15, which gives a possible trading interval of +/-$0.628 (+/-5.97%) 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 11.95% move between the lowest and the highest trading price during the day.

With no resistance above and support from accumulated volume @ $9.90, some $0.620 (5.89%) from the current price of $10.52, our system finds the risk reward attractive.

Is Direxion Daily S&P Biotech Bear 3X ETF ETF A Buy?

Several short-term signals are positive, despite the ETF being in a falling trend, we conclude that the current level may hold a buying opportunity as there is a fair chance for ETF to perform well in the short-term.

Current score: 4.750 Buy Candidate Unchanged

Predicted Opening Price for Direxion Daily S&P Biotech Bear 3X ETF of Friday, April 19, 2024

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