US Dollar ETF (UUP) Looks Ready to Run
10/29/2010 12:01 am EST
Shares of the Powershares DB US Dollar Index Bullish Fund (UUP) are acting like they are ready to rally.
Back in March 2008, UUP reached lows of $22.00 per share. In November 2009, UUP reached lows at $22.02 per share.
On Friday, October 15, 2010, UUP reached a low of $22.17 a share. This level has stopped all declines for three years, and every time it does so, it becomes a stronger support level.
On Friday, October 15, UUP also had a bullish outside reversal day, a pattern typically forecasting that a change in trend either has occurred or is imminent. Since October 15, volume has doubled and has remained high.
UUP rallied through October 19 and then sold off, but to a higher low. UUP is again rallying, and on Wednesday, October 27, it did so on triple the normal volume.
Putting a sell stop just below $22.00 per share, a bullish trade offers an excellent opportunity for strong upside gains.
By Frank Kollar of FibTimer.com