(VIXY) ProShares VIX Short-Term - Ratings and Ratios

The ProShares VIX Short-Term Futures ETF (BATS:VIXY) is designed to provide investors with exposure to market volatility, specifically the implied volatility of the S&P 500 index over the next 30 days, through its investment in publicly traded futures markets.

By tracking the VIX index, VIXY offers a unique opportunity for investors to hedge against potential market downturns or speculate on market volatility. The ETFs underlying index is calculated based on the prices of VIX futures contracts, which are derived from the prices of S&P 500 index options.

Given the current technical data, with the last price at $51.29, SMA20 at $60.27, and SMA50 at $58.66, the ETF is currently in a downtrend. The SMA200 at $50.30 indicates that the long-term trend is slightly upwards, suggesting a potential rebound. The ATR of 6.44, representing 12.55% of the current price, indicates high volatility, which is expected given the ETFs focus on market volatility.

Combining technical and fundamental data, we can forecast that VIXY will likely experience a short-term bounce if the S&P 500 index experiences a significant correction, causing the VIX index to spike. With an AUM of $96.30M USD, the ETF has sufficient liquidity to respond to market movements. If the current downtrend continues, VIXY may test its 52W Low of $40.16. However, if market volatility increases, driven by factors such as economic uncertainty or geopolitical tensions, VIXY could potentially surge towards its 52W High of $88.52.

Based on the analysis, a potential trading strategy could involve buying VIXY on a dip towards $50.30 (SMA200) and selling on a rally towards $60.27 (SMA20), with a stop-loss below $40.16 to limit potential losses. Alternatively, investors could consider using VIXY as a hedge against potential market downturns by allocating a portion of their portfolio to this ETF.