Direxion Daily Small Cap Bear 3X ETF Forecast

Direxion Daily Small Cap Bear 3X ETF upgraded from Sell Candidate to Hold/Accumulate after Thursday trading session.
(Updated on Apr 25, 2024)

TZA Signals & Forecast

The Direxion Daily Small Cap Bear 3X ETF holds a sell signal from the short-term Moving Average; at the same time, however, there is a buy signal from the long-term average. Since the short-term average is above the long-term average there is a general buy signal in the ETF giving a positive forecast for the stock. On further gains, the ETF will meet resistance from the short-term Moving Average at approximately $20.97. On a fall, the ETF will find some support from the long-term average at approximately $18.98. A break-up through the short-term average will send a buy signal, whereas a breakdown through the long-term average will send a sell signal. 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 Thursday, April 18, 2024, and so far it has fallen -5.47%. Further fall is indicated until a new bottom pivot has been found.

Support, Risk & Stop-loss for Direxion Daily Small Cap Bear 3X ETF

On the downside, the ETF finds support just below today's level from accumulated volume at $19.23 and $18.10. 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 Small Cap Bear 3X finds support just below today's level at $19.23. If this is broken, then the next support from accumulated volume will be at $18.10 and $17.99.

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 $0.94 between high and low, or 4.59%. For the last week, the ETF has had daily average volatility of 5.12%.

Our recommended stop-loss: $19.58 (-4.84%) (This ETF has high daily movements and this gives high risk. There is a sell signal from a pivot top found 5 days ago.)

Trading Expectations (TZA) For The Upcoming Trading Day Of Friday 26th

For the upcoming trading day on Friday, 26th we expect Direxion Daily Small Cap Bear 3X ETF to open at $20.83, and during the day (based on 14 day Average True Range), to move between $19.54 and $21.62, which gives a possible trading interval of +/-$1.04 (+/-5.06%) up or down from last closing price. If Direxion Daily Small Cap Bear 3X ETF takes out the full calculated possible swing range there will be an estimated 10.12% move between the lowest and the highest trading price during the day.

Since the stock is closer to the resistance from accumulated volume at $21.53 (4.62%) than the support at $19.23 (6.56%), 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 Small Cap Bear 3X ETF ETF A Buy?

Direxion Daily Small Cap Bear 3X holds several positive signals, but we still don't find these to be enough for a buy candidate. At the current level, it should be considered as a hold candidate (hold or accumulate) in this position whilst awaiting further development. We have upgraded our analysis conclusion for this ETF since the last evaluation from a Sell to a Hold/Accumulate candidate.

Current score: -0.313 Hold/Accumulate Upgraded

Predicted Opening Price for Direxion Daily Small Cap Bear 3X ETF of Friday, April 26, 2024

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