TZA Small Cap Bear 3x ETF Daily Chart Positive Divergence Upward Channel Gaps

TZA small cap inverse fund, one of the triple inverses, shows the falling wedges and positive divergences that forecasted all the spikes nicely. Note the bounce shown by the red lines in early April due to MACD and stochastics positive divergence but the histogram and money flow wanted to see another lower price. So after the launch, price did indeed come back down to satisfy the histogram and stochastics, and, as shown by the purple lines, positive divergence appeared across all indicators by late April so the bell was sounded for the bottom and the start of a long move up.

An upward channel is shown with the thin black lines, see how price fell thru the bottom rail but yesterdays action placed price directly at this trend line again. Thus, watch to see if price hops back inside the upward channel. There are no open gaps below so it is smooth sailing for the upside. Note the gaps shown in green, all are potential targets. With the long and strong indicators over the last couple weeks, price should move above 38 and fill the 39 gap. A fill of the 41 gap would place price at the top of the upward moving channel.

Watch to see if the 20 MA crosses above the 50 MA which is bullish. Also if the stochastics moves back above the 50% level. Chart is constructive for further upside. Weakness in small caps is not a healthy sign for the markets overall. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your finanical advisor before making any investment decision.