ProShares UltraShort 7-10 Year Treasury Price & Performance (PST)

The Powershares Ultrashort Lehman Treasury Proshares (PST) is presenting trading opportunities as it tests critical levels. Support at $22.32 signals a potential buy, while resistance at $23.49 suggests a shorting opportunity. Traders are advised to closely monitor these levels for strategic entries and exits, emphasizing risk management with stop-loss orders.1

Leveraged and inverse ETFs aim for amplified or opposite index returns, but their daily reset mechanism can lead to significant deviations over time. These instruments, suitable for experienced investors, face challenges like slippage and compounding effects, which can erode returns. Understanding their mechanics is crucial for effective use.2

Short-term trading strategies for PST suggest a buy above $23.5 targeting $24.64, or a short near the same level with a downside target of $23.22. These plans rely on breaking resistance or testing it as a short signal, underscoring the importance of technical analysis in guiding trades.1