Direxion Daily Small Cap Bear 3X in OverSold Territory

tza New York, February 6th (TradersHuddle.com) - Shares of Direxion Daily Small Cap Bear 3X Shares (NYSE:TZA) closed the trading session at $18.34 well below calculated support at $20.70 placing the stock in oversold territory, as investors and money managers have been moving out of the stock

Direxion Daily Small Cap Bear 3X Shares (NYSE:TZA) seeks daily investment results of 300% of the inverse of the price performance of the Russell 2000 Index. The index measures the performance of the small-cap segment of the United States equity universe and consists of the smallest 2,000 companies in the Russell 3000 Index. It includes the smallest securities based on a combination of their market cap and current index membership. The Fund creates short positions by investing at least 80% of its net assets in financial instruments that, in combination, provide leveraged and unleveraged exposure to the Small Cap Index.

Direxion Daily Small Cap Bear 3X's stock was trading in a well defined range with support at $20.70 and resistance at $22.90, prior to its decline. It was evident how traders went out of the stock, when it broke calculated support sparking the current down draft.

From a technical perspective the Direxion Daily Small Cap Bear 3X stock is in severe pain, as the harsh sell-off could place a heavy burden of buyers wanting their money back, generating a price dynamic where buyers will become sellers when a bounce materializes. It can be expected that previous support becomes resistance, as a new range gets defined, therefore the maximum move for the stock should be calculated to return to previous support at $20.70. Traders wanting to establish a long position in Direxion Daily Small Cap Bear 3Xto play an oversold bounce should consider waiting for evidence of buying at a specified area to use it as a pivot placing stop losses.

TradersHuddle Search

Stock Search:


Site Search:

Loading

Technical Scans

Recent Trading Ideas

Latest Partner Headlines

Stock Market

Loading
Chart
o Dow Jones 16,501.65 ▼12.72 (-0.08%)
o S&P 500 1,875.39 ▼4.16 (-0.22%)
o NASDAQ 4,126.97 0.00 (0.00%)
INDEXDJX:.DJI

Dow Jones

Company ID [INDEXDJX:.DJI] Last trade:16,501.65 Trade time:4:30PM EDT Value change:▼12.72 (-0.08%)
INDEXSP:.INX

S&P 500

Company ID [INDEXSP:.INX] Last trade:1,875.39 Trade time:4:30PM EDT Value change:▼4.16 (-0.22%)
INDEXNASDAQ:.IXIC

NASDAQ

Company ID [INDEXNASDAQ:.IXIC] Last trade:4,126.97 Trade time:5:15PM EDT Value change:0.00 (0.00%)

In The Wires

Copyright © 2013 TradersHuddle.com. All Rights Reserved.