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Technical Analysis of FAS

|Includes: Direxion Daily Financial Bull 3x Shares ETF (FAS), XLF

FAS is a triple leverage ETF, the fund seeks daily investment results, before fees and expenses, of 300% of the price performance of the Russell 1000 Financial Services index. As a long-term investment vehicle, this ETF is not great due to re balancing erosion. For short-term traders, this product can offer exposure to a market leading sector.

FAS has experienced the same downside pressure as most other tradable equities in the last two weeks. The financial sector is one of the weakest performers so far ytd, FAS recently crossed over to a negative return.

Looking at the chart below you should take note of the broken triangle pattern and the 200 day SMA (green line). The price is resting right on the 200 SMA as of todays close, 26.41. This will be a very interesting stock to watch tomorrow. If the overall market and FAS make a clean break lower it may be a good short opportunity. I will be watching which way this name bounces, as I have successfully used FAS in swing-trading strategies before.


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