Ultra Gold ProShares (UGL) - This double-leveraged ETF seeks to replicate, net of expenses, twice the performance of gold bullion as measured by the US dollar afternoon fixing price for delivery in London.
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On September 2, at $38.54, I said, "UGL is at the apex of a very long right triangle. The heavier volume on the buy side, as well as a Moving Average Convergence/Divergence (MACD) indicator that is very close to a buy signal, leads me to conclude that UGL will break through the top with a trading objective of $40."
My prior target has not only been met, but exceeded, with a major high-volume breakaway.
Targets now are difficult to measure, but traders who are willing to take a risk could still enter positions with tight stops.
Futures technicians say that the next resistance for spot gold is at $1,070 a troy ounce, which could result in a new target of $55 plus for UGL.
By Sam Collins of OptionsZone.com
