Amid Monkeypox Outbreak, This 3X Leveraged ETF Provides Exposure To Health Sector: What To Watch

The Direxion Daily Healthcare Bull 3X Shares CURE gapped up almost 2.52% higher on Monday in response to outbreaks of monkeypox being reported in several western nations.

CURE is a triple leveraged fund that is designed to outperform 72 U.S. companies in the home health care sector. The index includes a variety of companies including biotechnology, pharmaceuticals, health care equipment, supplies and technology developers and suppliers.

Some of the more familiar names in the ETF include Johnson & Johnson JNJ, weighted at 7.03%; Pfizer Inc. PFE, weighted at 4.36%; and Thermo Fisher Scientific Inc. TMO, weighted at 3.33%.

It should be noted that leveraged ETFs are meant to be used as a trading vehicle as opposed to a long-term investment.

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The CURE Chart: CURE reversed course into an uptrend after printing a bullish double bottom pattern on Feb. 24 and May 12 at the $97.67 level. The uptrend on CURE’s chart was confirmed on May 19, when the ETF printed a higher low at $100.18.

• On Monday, CURE was attempting to work to rise up to print a higher high above the May 17 high of $112.58. Bullish traders and investors will want to see that happen before CURE makes another low, which would negate the uptrend.
• CURE regained the support of the 21-day exponential moving average (EMA) on Monday, which is a positive sign for the bulls. When the ETF prints its last high it rejected the 21-day, which caused CURE to fall over 10% to print its higher low.
• If CURE can remain trading above the 21-day EMA for a period of time, the eight-day EMA will cross above the 21-day, which would give bullish traders more confidence going forward. The 50-day simple moving average (SMA) hasn’t crossed below the 200-day SMA yet, which means CURE has, so far, avoided a death cross from occurring on its chart.
• If CURE closes the trading day near its high-of-day price, it’s likely the ETF will trade higher on Tuesday to print a higher high. If the ETF closes flat or near its low-of-day price, CURE will print a doji candlestick or shooting star candlestick, respectively, which could indicate lower prices are on the horizon.
• CURE has resistance above at $112.71 and $118.60 and support below at $105.30 and $97.67.