The Direxion Financial Bull 3x ETF (FAS) is one of the popular ETF’s around, so I’d thought I’d take a technical look at it. As you can see it’s been on fire, catapulting from 60 to over 100 in just a few months. It’s looking mighty tired and overstretched though.
Stochastics reveal that the FAS ETF hasn’t been this overbought since last August and taking a look at the volume of the past two weeks shows buyers may be tiring up at these levels. The bottom line is that FAS is due for a pull back off these levels. The first level of support is around 95 and if it can’t hold there, 88 is the next level. There is strong support all the way down to the 70 level which is the 50 weekly moving average (an area it’s found support at twice now). A break below 70 would indicate financials are rolling over.