(UVXY) ProShares Ultra VIX - Ratings and Ratios

The ProShares Ultra VIX Short-Term Futures ETF (BATS:UVXY) is designed to provide leveraged exposure to the expected volatility of the S&P 500 over the next 30 days. The ETF seeks to achieve this by tracking the performance of a portfolio of VIX futures contracts, offering 2x daily leveraged returns. As a trading tool, UVXY is tailored for short-term strategies, given its daily reset mechanism, which can lead to compounding effects that may diverge from the broader market trends over extended periods. The ETF is part of the ProShares family, known for its leveraged and inverse products, and is listed on the BATS exchange, offering high liquidity with an average daily volume of over 22 million shares. The funds AUM stands at $564.15 million, reflecting its popularity among traders seeking to capitalize on market volatility.

Technically, UVXY is currently trading at $20.82, below its 200-day SMA of $23.81, indicating a bearish trend. The 20-day SMA of $18.78 and 50-day SMA of $19.73 suggest recent upward momentum but at levels below the longer-term average. Support levels are identified at $19.4, while resistance stands at $23.7, $25.9, and $30.0. The ATR of 1.50 signals moderate volatility. Over the next three months, UVXYs performance will likely hinge on broader market conditions. If equity markets experience increased instability, UVXY could rally as investors seek protection. Conversely, a period of sustained calm may lead to a decline in the ETFs price. The technical setup suggests that a break above $23.7 could signal a bullish reversal, while a drop below $19.4 may indicate further downside.