LABU 3x Biotechs Surges with Bullish Reversal Breakout

Nov 9, 2016: 4:26 PM CST

Triple-Leveraged ETFs offer chances for instant profit – or loss – depending on the outcome.

Today, the Biotech 3x Bullish fund LABU gives us a quick lesson in rapid bullishness.

Here’s the chart and key levels to watch for the moment:

From a chart perspective, LABU’s shares found support at the $22.00 to $24.00 level.

Keep in mind it’s best to do your analysis/planning on the underlying instead of the leveraged ETF.

Nonetheless, give yourself room – and wider stops – due to the increased volatility when pinpointing a support or reversal level.

Like May, a positive momentum divergence set the stage for a third rally (reversal) up away from the key pivot and that’s precisely what happened.

The prior two sessions of price action saw increased bullish pressure, propelling the 3x ETF from $24.00 to the $32.00 level (a great, instant profit for aggressive traders).

However, today’s session began with a huge upside opening gap that continued with a trend day from $38.00 to $42.00 – another instant profit.

For now, focus on the pivot near $46.00 and if price breaks through this barrier, we could see the ETF trade toward the prior high near $55.00 per share.

With increased profit potential comes increased risk, so do your  homework, read the prospectus, and trade these funds for aggressive profits (new traders should practice first due to the heightened volatility).

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Corey Rosenbloom, CMT

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1 Comment

One Response to “LABU 3x Biotechs Surges with Bullish Reversal Breakout”

  1. Filzy Says:

    There is definitely a pick up on reversal, but just need to make sure we get it right because wrong pick up on reversal might not be all that worthy at all. I am always doing it with wise approach and it helps fair bit with broker like OctaFX which is high class having rebates (cash back), low spreads, swap free account while many such benefits, it’s all very handy and helps me working out very nicely which brings plenty of rewards to me.