Direxion Daily S&P Biotech Bear 3X ETF Forecast
Explanation to Bollinger's Bands
Bollinger Bands was created by John Bollinger in the early 1980s, its purpose is to define price action relative to the assets highs and lows. This technical indicator is used to identify buy and sell signals and has proven very well in doing so.
Bollinger Bands consist of a set of three curves drawn in relation to securities prices. The middle band is a measure of the intermediate-term trend, usually a simple moving average, that serves as the base for the upper and lower bands. The interval between the upper and lower bands and the middle band is determined by volatility, typically the standard deviation of the same data that were used for the average. StockInvest.us uses Bollingers suggested 20 day average.
Middle Bollinger Band = 20-period simple moving average
Upper Bollinger Band = Middle Bollinger Band + 2 * 20-period standard deviation
Lower Bollinger Band = Middle Bollinger Band - 2 * 20-period standard deviation
BandWidth defines the current width of the band.
%b defines the current position within the band.
BandWidth = (Upper Bollinger Band - Lower Bollinger Band) / Middle Bollinger Band
%b = (Last - Lower Bollinger Band) / (Upper Bollinger Band - Lower Bollinger Band)
Live Samples:
Bottlenecks in bandwidth indicate an upcoming change. Break up through the moving average line or continuous movements above the moving average line indicate a break up, and vice versa.
Source: http://www.bollingerbands.com
Volatile ride for Direxion Daily S&P Biotech Bear 3X ETF price on Friday moving between $10.20 and $11.38
(Updated on Apr 19, 2024)
The Direxion Daily S&P Biotech Bear 3X ETF price gained 2.66% on the last trading day (Friday, 19th Apr 2024), rising from $10.52 to $10.80. It has now gained 6 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 11.56% from a day low at $10.20 to a day high of $11.38. The price has risen in 7 of the last 10 days and is up by 27.96% over the past 2 weeks. Volume fell on the last day by -982 thousand shares and in total, 14 million shares were bought and sold for approximately $156.08 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.
Given the current short-term trend, the ETF is expected to fall -7.13% during the next 3 months and, with a 90% probability hold a price between $5.02 and $10.03 at the end of this 3-month period. Do note, that if the stock price manages to stay at current levels or higher, our prediction target will start to change positively over the next few days as the conditions for the current predictions will be broken.
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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 $9.68 and $7.87. 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 83.05%. 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 $1.18 between high and low, or 11.56%. For the last week, the ETF has had daily average volatility of 7.54%.
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. 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. Since the Direxion Daily S&P Biotech Bear 3X has been rising for 6 days in a row, the risk over the next couple of days has increased. We don't expect a major reaction as the ETF is in very good shape technically, and therefore hold a positive evaluation despite the very short term risk.
Our recommended stop-loss: $10.49 (-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 37 days ago.)
Trading Expectations (LABD) For The Upcoming Trading Day Of Monday 22nd
For the upcoming trading day on Monday, 22nd we expect Direxion Daily S&P Biotech Bear 3X ETF to open at $10.79, and during the day (based on 14 day Average True Range), to move between $10.13 and $11.47, which gives a possible trading interval of +/-$0.668 (+/-6.18%) 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 12.36% move between the lowest and the highest trading price during the day.
With no resistance above and support from accumulated volume @ $9.90, some $0.90 (8.33%) from the current price of $10.80, our system finds the risk reward attractive.
Is Direxion Daily S&P Biotech Bear 3X ETF ETF A Buy?
Direxion Daily S&P Biotech Bear 3X holds several positive signals and despite the ETF being in a falling trend, we considered it to be a good choice at these current levels. We expect Direxion Daily S&P Biotech Bear 3X ETF will perform very well in the next 3 months. We have upgraded our analysis conclusion for this ETF since the last evaluation from a Buy to a Strong Buy candidate.
Current score: 5.625 Strong Buy Candidate Upgraded
Predicted Opening Price for Direxion Daily S&P Biotech Bear 3X ETF of Monday, April 22, 2024
| Fair opening price April 22, 2024 | Current price |
|---|---|
| $10.79 ( 0.0657%) | $10.80 |
The predicted opening price is based on yesterday's movements between high, low, and closing price.
Trading levels for LABD
Fibonacci Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 11.97 | 10.85 % | |
| R2 | 11.52 | 6.68 % | ||
| R1 | 11.24 | 4.10 % | ||
| Current price: | 10.80 | |||
| Support | S1 | 10.34 | -4.23 % | |
| S2 | 10.06 | -6.81 % | ||
| S3 | 9.61 | -10.98 % |
Accumulated Volume Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 0 | . | |
| R2 | 0 | . | ||
| R1 | 0 | . | ||
| Current price | 10.80 | |||
| Support | S1 | 9.90 | -8.33% | |
| S2 | 9.77 | -9.54% | ||
| S3 | 9.47 | -12.31% |
LABD Dividend Payout History
| # | Ex-Date | Pay Date | Amount | Yield | |
|---|---|---|---|---|---|
| 1 | Jan 18, 2024 | Mar 19, 2024 | Mar 26, 2024 | $0.0664 | 0.85% |
| 2 | Dec 21, 2023 | Dec 21, 2023 | Dec 21, 2023 | $0.0850 | 0.742% |
| 3 | Mar 23, 2023 | Sep 19, 2023 | Sep 26, 2023 | $0.192 | 0.94% |
| 4 | Mar 23, 2023 | Jun 21, 2023 | Jun 28, 2023 | $0.100 | 0.714% |
| 5 | Mar 20, 2023 | Mar 21, 2023 | Mar 28, 2023 | $0.218 | 0.99% |
FAQ
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