What's Behind Direxion Daily Financial Bull 3X Shares (FAS)'s Movement

Marco Green
July 26, 2017

Chart analysts may also use the indicator to project possible price reversals and to define trends. Generally speaking, an ADX value from 0-25 would indicate an absent or weak trend.

Investors have the option to employ a wide variety technical indicators when conducting stock research - and we will take a look at a few more here. MA's can be calculated for any time period, but two very popular time frames are the 50-day and 200-day moving averages. The RSI is considered to be an internal strength indicator, not to be confused with relative strength which is compared to other stocks and indices.

The ETF is -38.64% of its 52-Week High and 14.90% of its low, and is now having ATR of 1.38. A value of 25-50 would support a strong trend. Although it was originally intended for commodity traders to help identify the start and finish of market trends, it is frequently used to analyze stocks as well. Traders often add the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI) to identify the direction of a trend. After a recent check, the 14-day RSIfor Direxion Daily Retail Bull 3X Shares (RETL) is now at 49.05, the 7-day stands at 51.13, and the 3-day is sitting at 50.63. The Relative Strength Index (RSI) is a highly popular momentum indicator used for technical analysis. RSI is a momentum oscillator that moves in a range from 0 to 100. Wilder laid out the foundation for future technical analysts to further investigate the RSI and its relationship to underlying price movements. Other technical analysts have built upon the work of Wilder.

Investors may be watching other technical indicators such as the Williams Percent Range or Williams %R. Many consider the equity oversold if the reading is below -80 and overbought if the indicator is between 0 and -20. Closely tracking fundamentals and technicals can help give some insight into stock price behavior. At the time of writing, the 14-day ADX for Direxion Daily FTSE China Bull 3x Shares (YINN) is 22.24. For the past month, Direxion Daily MSCI Brazil Bull 3X ETF's stock has been 40.08%, -15.66% for the last quarter, -24.29% for the past six months and -0.26% for the past 52 weeks. Normal oscillations tend to stay in the range of -100 to +100. As a general rule, an RSI over 70 may indicate an overbought situation. The CCI may be used to spot if a stock is entering overbought (+100) and oversold (-100) territory.

Taking a closer look from a technical standpoint, Direxion Daily Real Estate Bull 3x Shares (DRN) presently has a 14-day Commodity Channel Index (CCI) of 53.99. Typically, the CCI oscillates above and below a zero line. A CCI reading above +100 would imply that the stock is overbought and possibly ready for a correction. A reading under 30 may indicate that the stock is oversold, and possibly undervalued. Active investors may choose to use this technical indicator as a stock evaluation tool.

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