(TSLZ) T-Rex 2X Inverse Tesla - Ratings and Ratios

The T-Rex2X Inverse Tesla Daily Target ETF (NASDAQ:TSLZ) is designed to provide investors with a leveraged inverse exposure to the daily performance of Tesla (TSLA) stock. By utilizing swap agreements with major global financial institutions, the fund aims to deliver returns that are equivalent to -200% of TSLAs daily performance, thereby catering to investors who anticipate a decline in Teslas stock price.

To achieve its objective, the fund invests at least 80% of its net assets in swap agreements that offer inverse exposure to TSLA. This investment strategy allows the fund to capitalize on daily fluctuations in Teslas stock price, making it an attractive option for traders seeking to hedge against potential losses or speculate on Teslas short-term performance. As a non-diversified fund, TSLZ is heavily reliant on the performance of TSLA, which may result in higher volatility.

Analyzing the available data, we can observe that TSLZ has experienced significant price movements in the past year, with a 52-week high of $33.02 and a low of $1.57, indicating substantial volatility. The current price of $1.57 is near the 52-week low, suggesting that the fund has potentially reached a critical support level. The Average True Range (ATR) of 0.51, representing 32.34% of the current price, further emphasizes the funds volatility.

Considering the technical indicators, the funds short-term moving averages (SMA20: $2.49, SMA50: $3.65) are significantly higher than the current price, indicating a potential bearish trend. However, the long-term SMA200 at $6.93 suggests that the fund has been in a downtrend for an extended period. Taking into account the fundamental data, the funds Assets Under Management (AUM) stand at $96.36M USD, which is a relatively modest size.

Forecasting the funds performance, we can expect TSLZ to continue to be heavily influenced by Teslas daily stock price movements. If TSLA experiences a decline, TSLZ is likely to benefit from its inverse exposure, potentially leading to an increase in its value. However, if TSLA surges, TSLZ may suffer significant losses due to its -200% daily exposure. Based on the current technical and fundamental data, it is likely that TSLZ will remain volatile in the short term, and investors should be cautious when considering investment decisions.