(HZU) BetaPro Silver 2x Daily - Ratings and Ratios

The BetaPro Silver2x Daily Bull ETF (TO:HZU) is a leveraged exchange-traded fund designed to provide twice the daily return of the Morningstar CAD O/N Cash GR CAD Index, which tracks the price of silver. As a product offered by Horizons ETFs, this fund is geared towards investors seeking amplified exposure to the precious metals price movements.

HZU is a Canadian-origin ETF categorized under Passive Inverse/Leveraged ETFs, indicating its strategy involves using derivatives to achieve its investment objective. The funds leveraged nature means it aims to double the daily returns of its underlying index, making it a high-risk, high-reward investment suitable for sophisticated traders and investors with a short-term focus.

Analyzing the available data, we can infer that the fund has experienced significant price volatility, as indicated by its Average True Range (ATR) of 1.37, representing a 4.93% daily price movement. The current price of 27.74 CAD is below both its 20-day and 50-day Simple Moving Averages (SMA20 and SMA50), suggesting a recent downtrend. However, it is above its 200-day SMA, indicating a longer-term uptrend.

Considering the technical indicators and fundamental data, a forecast for HZU can be constructed. If the price of silver continues to rise, HZUs leveraged nature could result in substantial gains. However, if silver prices decline, the funds value could drop significantly due to its inverse leveraged exposure. Given the current SMA20 and SMA50 values, a potential short-term resistance level is indicated around 28.20 to 29.05 CAD. A break above this resistance could signal further upside potential, while failure to do so might lead to continued consolidation or decline.

Using both technical and fundamental analysis, a potential trading strategy for HZU could involve closely monitoring silver prices and adjusting positions accordingly. Investors should be prepared for high volatility and consider setting stop-loss orders to manage risk. With an Assets Under Management (AUM) of 83.02M CAD, HZU has a reasonable level of liquidity, making it accessible for traders. A forecast based on the available data suggests that HZU could be poised for a potential rebound if it breaks through its current resistance levels, but caution is advised due to the inherent risks associated with leveraged ETFs.