ProShares UltraShort Russell2000 ETF Forecast

Green day on Wednesday for ProShares UltraShort Russell2000
(Updated on Apr 17, 2024)

TWM Signals & Forecast

Mostly positive signals in the chart today. The ProShares UltraShort Russell2000 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 $11.74 and $11.22. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Thursday, March 28, 2024, and so far it has risen 18.61%. 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 is rising along with the price. This is considered to be a good technical signal. The ETF had a Golden Star Signal on Thursday, February 01, 2024 in the short-term chart.

Golden Star Signal is when the short-term moving average, the long-term moving average, and price line meet in a special combination. This combination is very rare and often followed by long and strong gains for the ETF in question.

Support, Risk & Stop-loss for ProShares UltraShort Russell2000 ETF

On the downside, the ETF finds support just below today's level from accumulated volume at $11.48 and $10.98. 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, ProShares UltraShort Russell2000 finds support just below today's level at $11.48. If this is broken, then the next support from accumulated volume will be at $10.98 and $10.96.

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 $0.430 between high and low, or 3.58%. For the last week, the ETF has had daily average volatility of 3.73%.

The ProShares UltraShort Russell2000 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: $12.01 (-3.40%) (This ETF has medium daily movements and this gives medium risk. The RSI14 is 80 and this increases the risk substantially. There is a buy signal from a pivot bottom found 13 days ago.)

Trading Expectations (TWM) For The Upcoming Trading Day Of Thursday 18th

For the upcoming trading day on Thursday, 18th we expect ProShares UltraShort Russell2000 to open at $12.29, and during the day (based on 14 day Average True Range), to move between $12.04 and $12.82, which gives a possible trading interval of +/-$0.393 (+/-3.16%) up or down from last closing price. If ProShares UltraShort Russell2000 takes out the full calculated possible swing range there will be an estimated 6.32% move between the lowest and the highest trading price during the day.

Since the stock is closer to the resistance from accumulated volume at $12.60 (1.37%) than the support at $11.48 (7.64%), 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 ProShares UltraShort Russell2000 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: 4.476 Buy Candidate Unchanged

Predicted Opening Price for ProShares UltraShort Russell2000 of Thursday, April 18, 2024

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