TZA Daily Chart Small Cap 3x Bear Inverted H&S

TZA continues to remain attractive; the falling blue and green wedges and positive divergence have created a firm base. Price is above the 20 MA which is bullish (bearish for markets). Watch to see if the 20 MA moves above the 50 MA to verify further upside ahead. The RSI and money flow are above 50%, bullish. The indicators show a long and strong profile from top to top, sans a flatish MACD histogram, showing that another higher high should occur. The 22 strong horizontal support level serves as the next logical target on the upside. There are three juicy gaps and further horizontal resistance at 25, 26, 32 and 37.

Note the pink inverted H&S pattern is now developing a right shoulder. The head is 16.5 with neckline at 21, which is a difference of 4.5, thus, 21+4.5 = 25.5 target, which forms a confluence with the gap and horizontal resistance, so 25-26 is likely a target to be explored as the swimming trunks and swim suits are retrived from the closet.

In the direct near term, note how price is sitting above the 20 and 50 MA's, with a gap below as well, so the thought would be that price will pull back down to either test the 20 or 50 MA for support before bouncing back up to pursue the 22 target. The 21-22 resistance is very important since if price breaks up thru the door is then open to explore the 25-26 resistance confluence. This behavior obviously means that the broad markets would be tumbling lower.

Projection is a pull back in the days ahead but further upside to test the 21-22 area in the coming days or couple weeks. Remember, TZA is one of the most dangerous and speculative trades existing since it is a Triple X ETF. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here.  Consult your financial adviosr before making any investment decision.