(TNA) Direxion Daily Small Cap - Ratings and Ratios

The Direxion Daily Small Cap Bull 3X Shares (TNA) is an exchange-traded fund (ETF) designed to provide triple the daily returns of the small-cap segment of the US market, as represented by the Russell 3000 Indexs small-capitalization component. To achieve this, the fund invests at least 80% of its assets in a combination of financial instruments, including swap agreements, index securities, and other ETFs that track the underlying index. This leveraged exposure is intended for sophisticated investors seeking to capitalize on short-term market movements.

The underlying index comprises approximately 2,000 small-cap companies, selected based on their market capitalization and current membership in the Russell 3000 Index. As a non-diversified fund, TNAs investments are more concentrated, which can increase the risk of significant losses if the market moves against the funds positions. Investors should be aware that the funds use of leverage can amplify both gains and losses.

From a technical analysis perspective, TNAs recent price action has been relatively stable, with a current price of $30.53, closely aligned with its 20-day simple moving average (SMA) of $30.55. However, the funds 50-day SMA ($27.19) and 200-day SMA ($38.83) indicate a longer-term downtrend. The average true range (ATR) of 1.42, representing a 4.65% daily price range, suggests moderate volatility. Given the current technical setup, a breakout above the 50-day SMA could signal a potential reversal, while a failure to do so may lead to continued downward pressure.

Fundamentally, TNA has $1.949 billion in assets under management (AUM), indicating a reasonable level of investor interest. Considering both the technical and fundamental aspects, a potential forecast for TNA could involve a short-term trading range between $28 and $32, with a potential breakout or breakdown dependent on broader market trends and the performance of the underlying small-cap index. If the Russell 3000 Indexs small-cap component experiences a significant upswing, TNA could potentially rally towards its 52-week high of $55.88. Conversely, a downturn could lead to a decline towards its 52-week low of $19.12.