Double-Top Breakout in DUG Signals Higher Prices

08/19/2009 12:01 am EST

Focus: ETFS

UltraShort Oil & Gas ProShares (DUG) - This ETF seeks daily investment results that correspond to twice the inverse of the daily performance of the Dow Jones US Oil & Gas Index.



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This inverse ETF has given multiple buy signals, indicating lower prices for oil and gas.

The double-top breakout is supported by higher volume and a stochastic buy signal, and should result in a target of $22 to $23.

This leveraged ETF is not eligible for loan value in a margin account, and the position should be protected with a stop-loss.

By Sam Collins of OptionsZone.com

 

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