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
Stronger technical forecast for Direxion Daily S&P Biotech Bear 3X ETF price after Wednesday trading.
(Updated on Apr 24, 2024)
The Direxion Daily S&P Biotech Bear 3X ETF price gained 2.98% on the last trading day (Wednesday, 24th Apr 2024), rising from $10.07 to $10.37. During the last trading day the ETF fluctuated 6.21% from a day low at $9.83 to a day high of $10.44. The price has risen in 7 of the last 10 days and is up by 21.71% over the past 2 weeks. Volume fell on the last day by -9 million shares and in total, 11 million shares were bought and sold for approximately $116.90 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 ETFis at the upper part of a very wide and horizontal trend and normally this may pose a good selling opportunity but a break-up through the top trend line at $10.81 will give a strong buy signal and a trend shift could be expected. Given the current horizontal trend, you can expect Direxion Daily S&P Biotech Bear 3X ETF with a 90% probability to be traded between $6.07 and $10.95 at the end of this 3-month period. A break of a horizontal trend is often followed by a large increase in the volume, and ETFS seldom manage to go directly from the bottom of a trend up to the top. ETFS turning up in the middle of a horizontal trend are therefore considered to be potential runners.
Ready to grow your portfolio? Here's your beginner's guide to opening a free brokerage account.
LABD Signals & Forecast
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 $10.29 and $8.22. 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). 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. A sell signal was issued from a pivot top point on Friday, April 19, 2024, and so far it has fallen -3.98%. Further fall is indicated until a new bottom pivot has been found.
Support, Risk & Stop-loss for Direxion Daily S&P Biotech Bear 3X ETF
Direxion Daily S&P Biotech Bear 3X finds support from accumulated volume at $9.90 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.
This ETF may move very much during the day (volatility) and with a very large prediction interval from the Bollinger Band this ETF is considered to be "very high risk". During the last day, the ETF moved $0.610 between high and low, or 6.21%. For the last week, the ETF has had daily average volatility of 8.06%.
Our recommended stop-loss: $9.90 (-4.51%) (This ETF has very high daily movements and this gives very high risk. There is a sell signal from a pivot top found 3 days ago.)
Trading Expectations (LABD) For The Upcoming Trading Day Of Thursday 25th
For the upcoming trading day on Thursday, 25th we expect Direxion Daily S&P Biotech Bear 3X ETF to open at $10.21, and during the day (based on 14 day Average True Range), to move between $9.68 and $11.06, which gives a possible trading interval of +/-$0.694 (+/-6.69%) 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 13.38% move between the lowest and the highest trading price during the day.
Since the stock is closer to the resistance from accumulated volume at $10.39 (0.19%) than the support at $9.90 (4.53%), 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 Direxion Daily S&P Biotech Bear 3X ETF ETF A Buy?
Several short-term signals are positive and we conclude that the current level may hold a buying opportunity, as there is a fair chance for Direxion Daily S&P Biotech Bear 3X ETF to perform well in the short-term period. We have upgraded our analysis conclusion for this ETF since the last evaluation from a Hold/Accumulate to a Buy candidate.
Current score: 2.054 Buy Candidate Upgraded
Predicted Opening Price for Direxion Daily S&P Biotech Bear 3X ETF of Thursday, April 25, 2024
| Fair opening price April 25, 2024 | Current price |
|---|---|
| $10.21 ( 1.51%) | $10.37 |
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 | 10.82 | 4.37 % | |
| R2 | 10.59 | 2.12 % | ||
| R1 | 10.45 | 0.736 % | ||
| Current price: | 10.37 | |||
| Support | S1 | 9.98 | -3.76 % | |
| S2 | 9.84 | -5.15 % | ||
| S3 | 9.60 | -7.39 % |
Accumulated Volume Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 10.80 | 4.15 % | |
| R2 | 10.52 | 1.45 % | ||
| R1 | 10.39 | 0.193 % | ||
| Current price | 10.37 | |||
| Support | S1 | 9.90 | -4.53% | |
| S2 | 9.77 | -5.79% | ||
| S3 | 9.47 | -8.68% |
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
Click here for our free guide on how to buy Direxion Daily S&P Biotech Bear 3X ETF ETF.
