(WTIU) UBS ETRACS - ProShares - Ratings and Ratios

The UBS ETRACS - ProShares Daily 3x Long Crude ETN (WTIU) is a leveraged exchange-traded note designed to provide three times the daily return of the underlying crude oil index. However, its crucial to understand that this product is not suitable for long-term investments due to its daily resetting leverage, which can result in significant deviations from the expected three times return over extended periods.

From a technical analysis perspective, WTIU is currently trading at $8.53, slightly below its 20-day simple moving average (SMA) of $8.55, indicating a potential bearish trend. The 50-day SMA at $9.42 and 200-day SMA at $12.59 are both above the current price, further reinforcing the bearish sentiment. The Average True Range (ATR) of 0.70 represents an 8.17% daily price movement, suggesting relatively high volatility.

Fundamentally, the Assets Under Management (AUM) for WTIU stand at $8.63 million USD, which is relatively low and may indicate limited investor interest or liquidity concerns. This, combined with the products nature as a leveraged ETN, suggests that investors should be cautious about potential liquidity risks and the impact of fees on returns.

Forecasting the future performance of WTIU requires analyzing both technical and fundamental data. Given the current bearish trend indicated by the SMA analysis and the high volatility, its likely that WTIU will continue to face downward pressure in the short term. If crude oil prices experience a significant surge, WTIU could potentially benefit due to its 3x leveraged long exposure. However, the daily resetting leverage and associated fees will continue to erode returns over time. Therefore, a potential trading strategy could involve closely monitoring crude oil price movements and using technical indicators to time entries and exits, while being mindful of the products limitations and associated risks.