Direxion Daily Small Cap Bear 3X near Support

Published on Tuesday, 07 February 2012 09:14 Written by TradersHuddle Wire

New York, February 7th (TradersHuddle.com) - Shares of Direxion Daily Small Cap Bear 3X Shares (NYSE:TZA) finished near calculated support at $18.17.

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 current stock range is defined by current calculated support defined at $18.17 and by the resistance level at $22.90.

The area defined as calculated support, is where we expect for buyers to likely materialize, which could provide a lift to the shares. However, this area if breached will signal participants that the stock failed to entice buyers to step in an support the stock.

Traders wanting to establish a position should pay close attention to Direxion Daily Small Cap Bear 3X's price action, and establish a position as close to support as possible, but only after buying materializes. Traders should understand that the resistance point at $22.90 might limit their upside, however if the stock breaks resistance, it could be a good point to add to the position.