YieldMax TSLA Option Income Strategy ETF

The primary goal of this investment Fund is to generate consistent income. In addition, it aims to provide investment exposure to the common stock of Tesla, Inc. (TSLA), while maintaining a cap on potential profit gains. The Fund will focus on implementing its investment strategy in relation to TSLA shares.

Technical Observation (on the weekly chart): 

The price of TSLY appears to be following a descending channel pattern, characterized by lower highs and lower lows, indicating a persistent downtrend. It is advisable to wait for a change in this structure before initiating long positions. The ongoing downtrend might signal a short-term consolidation period with a negative inclination. The 14-day Relative Strength Index (RSI), which measures momentum, remains below the midpoint, reinforcing the negative sentiment. Additionally, it is crucial to note that the ETF is currently positioned below both its 21-day and 50-day Simple Moving Averages (SMAs), suggesting these levels could potentially act as temporary resistance points in the near future.

As per the above-mentioned price action, recent key business and financial updates, momentum in the ETF over the last month, and technical indicators analysis, a ‘Watch’ rating has been given to YieldMax TSLA Option Income Strategy ETF (NYSEARCA: TSLY) at its current price of USD 16.16 as of March 27, 2024 (7.40 am PDT). 

Individuals can evaluate the ETF based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

YieldMax NVDA Option Income Strategy ETF

The main objective of this investment Fund is to provide regular income and investment exposure to the price fluctuations of Nvidia Corporation (NVDA). It will manage potential gains by setting a limit. To achieve its goals, the Fund will utilize a synthetic covered call strategy, involving the purchase and sale of a mix of exchange-traded and FLEX call and put option contracts, all based on the value of NVDA's price returns.

Technical Observation (on the daily chart): 

Following a substantial upward trend, NVDY's price encountered resistance at significant levels and subsequently declined, hinting at the possibility of a further downtrend. This situation may lead to a short-term consolidation period with a bearish inclination. The 14-day Relative Strength Index (RSI), which evaluates momentum, exhibits divergence compared to the price action, further emphasizing the negative sentiment. It is worth mentioning that the ETF currently stands above its 50-day Simple Moving Average (SMA), indicating that this level could potentially function as a temporary support point in the near future.

As per the above-mentioned price action, recent key business and financial updates, momentum in the ETF over the last month, and technical indicators analysis, a ‘Watch’ rating has been given to YieldMax NVDA Option Income Strategy ETF (NYSEARCA: NVDY) at its current price of USD 29.16 as of March 27, 2024 (7.40 am PDT). 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the ETFs has not been considered in the decision-making process. Other factors which could impact the ETF prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

How to Read the Charts?

The yellow colour line reflects the 21-period simple moving average (SMA) while the blue line indicates the 50- period simple moving average (SMA). SMA helps to identify existing price trends. If the prices are trading above the 21-period and 50-period moving average, then it shows prices are currently trading in a bullish trend.

The orange colour line in the chart’s lower segment reflects the Relative Strength Index (14-Period) which indicates price momentum and signals momentum in trend. A reading of 70 or above suggests overbought status while a reading of 30 or below suggests an oversold status.

The red and green colour bars in the chart’s lower segment show the volume of the ETF. The volume is the number of shares that changed hands during a given day. ETFs with high volumes are more liquid than ETFs with lesser volume as liquidity in ETFs helps with easier and faster execution of the order.

The Orange colour lines are the trend lines drawn by connecting two or more price points and used for trend identification purposes. The trend line also acts as a line of support and resistance.

Technical Indicators Defined: -

Support: A level at which the ETF prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the ETF and if the price breaches the level, then Support 2 may act as the crucial support level for the ETF. 

Resistance: A level at which the ETF prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the ETF and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the ETF. 

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the ETF prices. 

Past performance is neither an indicator nor a guarantee of future performance. 

The reference date for all price data, currency, technical indicators, support, and resistance levels is March 27, 2024 (7:40 am PDT). The reference data in this report has been partly sourced from REFINITIV. 

Abbreviations

CMP: Current Market Price

SMA: Simple Moving Average

RSI: Relative Strength Index

USD: United States dollar 

Note: Trading decisions require a thorough analysis by individual. Technical reports in general chart out metrics that may be assessed by individuals before any ETF evaluation. The above are illustrative analytical factors used for evaluating ETFs; other parameters can be looked at along with additional risks per se. Past performance is neither an indicator nor a guarantee of future performance.