Tuesday, July 21, 2009

DUG

$DJUSEN has had a great run up the past few days. It just keeps rising and rising. But in the words of Wreckx-n-Effect "What goes up must come down, Easy come Easy go"

Looking at $DJUSEN you can see it is starting to meet some resistance levels at 448-456. 448 being a HL and 450 being the 200EMA.
It is also now considered overbought by STOCH.
DUG the 2X inverse of $DJUSEN looks good at these levels, notice the Bullish divergence on the MACD hourly chart, also price has failed to make a lower low and has a small uptrend going.
DUG on the daily chart is nearing support as well and could provide an area for it to bounce.

My out will be a close above the 200EMA on $DJUSEN.