(NVDX) T-Rex 2X Long IDIA Daily - Ratings and Ratios

The T-Rex2X Long NVIDIA Daily Target ETF (BATS:NVDX) is a non-diversified, leveraged exchange-traded fund that seeks to provide 200% daily exposure to the performance of NVIDIA (NVDA) through swap agreements with major global financial institutions. This means the fund aims to deliver double the daily returns of NVDA, making it a high-risk, high-reward investment.

By utilizing swap agreements, the fund can gain exposure to NVDA without directly holding the stock, allowing for a more flexible investment strategy. The agreements involve exchanging returns with counterparties, effectively providing the fund with 200% exposure to NVDAs daily performance. This structure enables investors to capitalize on short-term movements in NVDAs stock price.

Analyzing the funds technical data, we see that the last price is $8.25, with a 20-day simple moving average (SMA) of $7.35, indicating a recent uptrend. The 50-day SMA is $8.00, and the 200-day SMA is $12.24, suggesting a longer-term downtrend. The average true range (ATR) is $0.83, representing a 10.09% daily volatility. Given the current price and volatility, we can expect significant price swings.

Combining technical and fundamental data, we observe that the funds assets under management (AUM) stand at $482.96M USD. With NVDAs recent price movements and the overall trend in the tech sector, we can forecast that NVDX will continue to experience high volatility. If NVDAs price surges, NVDX is likely to more than double that gain on a daily basis, potentially reaching new highs. Conversely, a decline in NVDAs price could result in substantial losses for NVDX.

Based on the current SMA20 and SMA50, a bullish crossover has occurred, indicating a potential short-term uptrend. However, the SMA200 suggests that the long-term trend is still bearish. Considering the high volatility and leveraged nature of NVDX, investors should be cautious and closely monitor NVDAs performance. A forecast based on the current technical and fundamental data suggests that NVDX may continue to experience significant price movements, potentially reaching $10.00 in the short term if NVDAs price continues to rise. However, a decline below $7.00 could trigger a significant sell-off.