FAS bullish leveraged EFT on the financial sector
FAS is one of the Direxion leveraged ETFs focused on the financial sector. As can be seen on
the 15 minute the price action has had increasing volatility in the past month. Increasing
volatility is the hallmark of the megaphone pattern ( a megaphone is a cone like hand held
plastic device used in the old days before bullhorns and other things to amplify voice for
cheers). FAS may have increasing volatility because of federal actions related to rate hikes,
some bank failures and the banking industry adjusting to the " new normal" as higher rates
become increasingly integrated into the financial system while still remaining viligent
regarding a recession and its own set of complications.
To play a megaphone traders will typically set a plan to buy on the lower support trendline
hold for a short period and then sell at the upper resistance trendline. I will open a long
trade on FAS given that it is presently near to support making for a suitable risk to reward
ratio if putting a stop loss immediately below the support trendline.
the 15 minute the price action has had increasing volatility in the past month. Increasing
volatility is the hallmark of the megaphone pattern ( a megaphone is a cone like hand held
plastic device used in the old days before bullhorns and other things to amplify voice for
cheers). FAS may have increasing volatility because of federal actions related to rate hikes,
some bank failures and the banking industry adjusting to the " new normal" as higher rates
become increasingly integrated into the financial system while still remaining viligent
regarding a recession and its own set of complications.
To play a megaphone traders will typically set a plan to buy on the lower support trendline
hold for a short period and then sell at the upper resistance trendline. I will open a long
trade on FAS given that it is presently near to support making for a suitable risk to reward
ratio if putting a stop loss immediately below the support trendline.