(DBPE) Xtrackers LevDAX Daily Swap - Ratings and Ratios

The Xtrackers LevDAX Daily Swap UCITS ETF1C (XETRA:DBPE) is a leveraged ETF that tracks the DAX index, providing investors with amplified exposure to the German stock markets performance. As a daily leveraged ETF, it aims to deliver twice the daily return of the DAX index, making it a tool for traders seeking to capitalize on short-term market movements.

Analyzing the ETFs characteristics, we can infer that it is designed for sophisticated investors who are comfortable with the risks associated with leveraged trading. The funds Assets Under Management (AUM) stand at 43.89M EUR, indicating a relatively modest size. This could impact liquidity, and traders should be aware of potential trading costs and the possibility of larger bid-ask spreads.

From a technical analysis perspective, the ETFs price action indicates a strong uptrend, with the last price of 280.25 sitting above key moving averages (SMA20: 258.15, SMA50: 247.27, SMA200: 212.99). The Average True Range (ATR) of 9.71, or 3.46%, suggests moderate volatility. Given the current price at the 52-week high, we can anticipate potential resistance at this level. A break above this could lead to further gains, while a failure to sustain could result in a pullback towards the SMA20 or SMA50.

Forecasting the ETFs future performance involves analyzing both technical and fundamental data. Technically, a continuation of the uptrend is plausible if the ETF can maintain its position above key support levels. Fundamentally, the DAX indexs performance is closely tied to the German economy and broader European market trends. If the German economy continues to show resilience, or if theres a positive shift in market sentiment, the DAX and consequently the LevDAX ETF could see further gains. Conversely, any downturn in the German economy or negative market sentiment could lead to a decline.

Based on the available data, a potential trading strategy could involve monitoring the ETFs ability to sustain its current price levels. A hold above 280.25 could signal further upside potential, targeting new highs. Conversely, a drop below the SMA20 (258.15) might indicate a start of a correction, potentially towards the SMA50 (247.27). Traders should closely watch these levels and adjust their strategies accordingly, keeping in mind the leveraged nature of the ETF and its associated risks.