The Direxion Daily AVGO Bull 2X ETF (NASDAQ:AVL) this week hit a nearly five-month high as prices are in a six-week-old uptrend on the daily bar chart. This suggests the path of least resistance for prices will remain sideways to higher in the near term, until a significantly bearish technical signal occurs to suggest the uptrend is ending.

AVL prices have backed down from this week's high of 64.00, on what is so far just a routine downside correction from recent gains. However, this week's high is now some moderately stiff overhead technical resistance, but if AVL prices can push above and close above this week's high, such would be a fresh, significantly bullish technical development that would suggest another leg up in prices is underway. And then the next upside price objective for the bulls would be the December high of 74.75, which is the high for the life of the ETF.

Bearish shorter-term, chart-based clues to suggest the bull move in AVL is ending would include a move below solid technical support at 52.29, which would also negate the price uptrend on the daily bar chart. Two big daily downside price moves in a row, accompanied by higher daily volume, would also be a bearish technical signal. A bearish line crossover signal produced by the aforementioned moving averages, whereby the 4-day crosses below the 9-day moving average, would also spell near-term trouble for AVL.

Veteran technical traders look for one major chart element when making their trading decisions: price trend. Price trend is the strongest chart-based signal – and successful traders know it and act upon it. See on the daily bar chart for the Direxion Daily AVGO Bear 1X ETF (NASDAQ:AVS) that prices are in a steep downtrend and this week hit a new low for the life of the ETF. The trend is the bears' friend for AVS.

There is one early warning signal that the price downtrend in AVS is losing some steam, and it's coming from the Relative Strength Index (RSI). AVS prices this week hit a new low. Yet, see at the bottom of the AVS daily bar chart that the RSI line turned up in late April and has been trending higher. This is "bullish divergence" and is defined by a market making a new for-the-move low, but the RSI does not make a new low, and turns up. It suggests the price downtrend is becoming tired.

Early, shorter-term technical clues that would suggest AVS prices have bottomed out and the bears have run out of gas would be two sessions in a row of big price gains, or a technically bullish weekly high close on a Friday. A bullish moving average line crossover signal produced by the 4-day crossing above the 9-day moving average would be a technical signal that AVS prices can start to trend higher in the near term. A move in AVS prices above solid chart resistance at 8.13 would also give the bulls power to suggest a price uptrend could be sustained.