(NVDS) AXS 1.25X DA Bear Daily - Ratings and Ratios

The AXS 1.25X NVDA Bear Daily ETF (NASDAQ:NVDS) is an actively managed exchange-traded fund that aims to deliver 1.5 times the inverse daily performance of NVIDIA Corporation (NVDA). This means that if NVDAs stock price falls by 1% on a given day, the ETF is designed to rise by 1.5% on that same day, before fees and expenses.

The fund achieves its objective by entering into one or more swaps on NVDA, allowing it to gain the desired inverse exposure. As an actively managed ETF, the funds holdings and strategies are not constrained by a specific index or benchmark, enabling the managers to adapt to changing market conditions. With a non-diversified investment approach, the fund focuses on achieving its daily inverse leverage objective, making it a targeted tool for investors seeking to hedge against or speculate on NVDAs daily price movements.

Given the current technical data, the ETFs last price is $18.57, which is below its 20-day, 50-day, and 200-day simple moving averages (SMA20: $22.90, SMA50: $26.04, SMA200: $27.13). This suggests a bearish trend. The Average True Range (ATR) is 2.03, indicating a relatively high volatility of 10.91%. The 52-week high and low are $50.93 and $18.35, respectively, showing that the ETF is currently trading near its 52-week low. Considering the fundamental data, the funds Assets Under Management (AUM) stand at $30.01 million.

Forecasting the ETFs future performance involves analyzing both technical and fundamental factors. Technically, the ETFs current price near its 52-week low and below its short-term and long-term moving averages indicates a strong bearish sentiment. If NVDAs stock price continues to face downward pressure, the ETF is likely to benefit, potentially moving away from its 52-week low. Fundamentally, the AUM of $30.01 million suggests a relatively small but still viable fund. If NVDA experiences significant daily declines, the demand for inverse exposure could drive the ETFs price higher. However, the high volatility and the ETFs leveraged nature mean that it carries substantial risk. Investors should closely monitor NVDAs daily performance and adjust their strategies accordingly.

Based on the current technical and fundamental analysis, a potential forecast for NVDS could involve a short-term bullish outlook if NVDAs stock price continues to decline. However, this is contingent on NVDAs daily performance, and any unexpected positive movement could adversely affect the ETF. Investors should be prepared for the possibility of significant price swings and consider their risk tolerance before investing in NVDS.