(TSDD) GraniteShares 1.5x Short - Ratings and Ratios

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

As an inverse ETF, TSDD is designed for traders and investors looking to hedge against or speculate on the decline of Teslas stock price. The funds performance is reset daily, meaning its returns are calculated based on the daily change in TSLAs stock price. This reset mechanism can lead to variations in the funds performance over longer periods due to compounding effects.

Analyzing the technical data, TSDDs current price is $22.55, significantly lower than its 20-day SMA of $32.56, 50-day SMA of $49.22, and 200-day SMA of $90.51. The Average True Range (ATR) is 6.57, representing a volatility of 29.12%. The 52-week high and low are $428.40 and $21.58, respectively, indicating a substantial decline in the funds value over the past year. These technical indicators suggest a bearish trend and high volatility.

From a fundamental perspective, the funds Assets Under Management (AUM) stand at $59.41 million. This relatively modest AUM may impact the funds liquidity and trading costs.

Forecasting TSDDs future performance involves analyzing both technical and fundamental data. Given the current bearish trend and high volatility, a potential short-term trading strategy could involve closely monitoring TSLAs stock price movements and adjusting positions accordingly. If TSLAs stock price continues to rise, TSDD is likely to decline further due to its inverse nature. Conversely, a decline in TSLAs stock price could lead to a rise in TSDD. However, the funds daily reset and compounding effects may lead to deviations from the expected inverse performance over longer periods. Traders should be cautious and consider the risks associated with inverse ETFs, including the potential for significant losses if the market moves against their position.

Based on the technical indicators, a potential support level for TSDD is around its 52-week low of $21.58. A break below this level could lead to further declines. On the other hand, resistance levels are likely to be around the 20-day, 50-day, and 200-day SMAs. A sustained move above these levels could indicate a potential reversal in the funds trend. However, given the current market conditions and TSLAs stock price movements, a cautious approach is warranted.