ProShares UltraPro Short S&P500 ETF Forecast

Weaker technical forecast for ProShares UltraPro Short S&P500 as ETF downgraded to Buy Candidate.
(Updated on Apr 18, 2024)

SPXU Signals & Forecast

Mostly positive signals in the chart today. The ProShares UltraPro Short S&P500 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 $35.62 and $12.56. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Wednesday, March 27, 2024, and so far it has risen 478.60%. 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 ProShares UltraPro Short S&P500 ETF

ProShares UltraPro Short S&P500 finds support from accumulated volume at $36.38 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 $1.22 between high and low, or 3.36%. For the last week, the ETF has had daily average volatility of 4.21%.

The ProShares UltraPro Short S&P500 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.

Our recommended stop-loss: $36.36 (-2.56%) (This ETF has very high daily movements and this gives very high risk. The RSI14 is 97 and this increases the risk substantially. There is a buy signal from a pivot bottom found 15 days ago.)

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

For the upcoming trading day on Friday, 19th we expect ProShares UltraPro Short S&P500 to open at $37.06, and during the day (based on 14 day Average True Range), to move between $35.38 and $39.26, which gives a possible trading interval of +/-$1.94 (+/-5.20%) up or down from last closing price. If ProShares UltraPro Short S&P500 takes out the full calculated possible swing range there will be an estimated 10.39% move between the lowest and the highest trading price during the day.

With no resistance above and support from accumulated volume @ $36.38, some $0.94 (2.52%) from the current price of $37.32, our system finds the risk reward attractive.

Is ProShares UltraPro Short S&P500 ETF A Buy?

Several short-term signals, along with a general good trend, are positive and we conclude that the current level may hold a buying opportunity as there is a fair chance for ProShares UltraPro Short S&P500 ETF to perform well in the short-term. 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 Buy candidate.

Current score: 4.406 Buy Candidate Downgraded

Predicted Opening Price for ProShares UltraPro Short S&P500 of Friday, April 19, 2024

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