(NVD) GraniteShares 1.5x Short DA - Ratings and Ratios

The GraniteShares 1.5x Short NVDA Daily ETF (NVD) is an actively managed exchange-traded fund designed to deliver 1.5 times the inverse daily return of NVIDIA Corporation (NVDA) stock through a swap agreement. The funds primary objective is to achieve the inverse daily performance of NVDA for a single trading day, making it a non-diversified investment vehicle.

As an inverse ETF, NVD is tailored for investors seeking to capitalize on the daily decline of NVDAs stock price. It is crucial to understand that this fund is not intended for long-term investment strategies due to its daily rebalancing and compounding effects, which can lead to deviations from its intended inverse performance over extended periods.

Analyzing the provided technical data, we observe that NVDs last price is $17.50, indicating a significant decline from its 52-week high of $100.29. The short-term (SMA20), medium-term (SMA50), and long-term (SMA200) moving averages stand at $25.48, $29.63, and $32.97, respectively, suggesting a downtrend. The Average True Range (ATR) of 3.69, representing 21.10% of the last price, signifies considerable daily price volatility.

Considering the fundamental data, the funds Assets Under Management (AUM) amount to $112.03 million USD. This relatively modest AUM may impact liquidity and potentially result in higher trading costs.

Forecasting NVDs future performance involves analyzing both technical and fundamental data. Given NVDAs historical volatility and the current downtrend in NVD, we can anticipate continued fluctuations. If NVDAs stock price continues to rise, NVD is likely to decline further due to its inverse nature. Conversely, a decline in NVDAs stock price could lead to an increase in NVDs value. However, the 1.5x leverage amplifies both gains and losses, making precise predictions challenging. Based on the current technical indicators, a potential support level for NVD is its 52-week low of $17.50, which it has already reached. A bounce from this level or a continued decline will depend on NVDAs future price movements and overall market conditions.

To make an informed investment decision, its essential to closely monitor NVDAs stock price movements and adjust expectations accordingly. Investors should be prepared for the high-risk nature of this investment, as the leveraged inverse ETF can result in substantial losses if NVDAs stock price moves in the opposite direction of the funds strategy.