Monday, June 15, 2009

DIG or DUG

Here is a chart of the Dow Jones U.S Oil and Gas Index which DUG and DIG follow. 
Today it bounced off its lower channel line which has support underneath it well from the 20EMA.  But it is also below resistance and has formed a wedge which is bearish. 

Keep an eye on this.  A break of that lower channel line would be bearish, but it could bounce off this level as well.