(TSLS) Direxion Daily TSLA - Ratings and Ratios

The Direxion Daily TSLA Bear 1X Shares ETF is designed to provide investors with a daily inverse exposure to the performance of Tesla, Inc. (TSLA). By investing in a combination of financial instruments, including swap agreements and options, the fund aims to deliver returns that are opposite to those of TSLA on a daily basis. This makes it a potential tool for investors seeking to hedge against potential declines in TSLA or capitalize on expected short-term downturns.

As a non-diversified ETF, the funds investment strategy is heavily focused on achieving its inverse exposure to TSLA, which may result in higher volatility compared to diversified funds. The use of derivatives and other financial instruments to achieve this exposure can also introduce additional risks, including counterparty risk and liquidity risk.

Analyzing the technical data, the current price of 7.61 is below its 20-day, 50-day, and 200-day simple moving averages (SMA20, SMA50, SMA200), indicating a bearish trend. The Average True Range (ATR) of 0.73, representing 9.63% of the current price, suggests relatively high volatility. Given the 52-week high and low of 23.93 and 6.83, respectively, the fund is currently trading near its 52-week low, potentially indicating a level of support.

Considering the fundamental data, the Assets Under Management (AUM) of $54.87M USD indicate a relatively small fund, which might impact liquidity and the ability to scale. However, the funds size also reflects a niche product catering to specific investor needs, such as hedging or speculating against TSLA.

Forecasting the performance of TSLS involves analyzing both the technical and fundamental data. Given the current bearish trend indicated by the moving averages and the proximity to the 52-week low, theres a potential for a bounce or consolidation. However, the inverse nature of the fund means its performance is directly tied to the opposite of TSLAs daily performance. If TSLA is expected to decline, TSLS could potentially rise. Conversely, a rise in TSLA would likely result in a decline in TSLS. As of the last price, the fund is near a critical support level (52-week low), and a break below this could lead to further decline, while a hold above this level might indicate a potential for short-term gains. Investors should closely monitor TSLAs performance and adjust their strategies accordingly.