Monday, February 6, 2012

DIG, ERX Breakout?


Today was a pause day in the markets after the dramatic appreciation of Friday, but it is merely a pause day as indicated by the market indicators.

Even with a pause day, some issues are breaking out. DIG, for example, is the Ultra ETF for Oil & Gas, and has been butting up against a resistance level numerous times--but each downward excursion recently has been less. Such patterns indicate a breakout to the flat side, which here is upwards. Today, near the close, it is peaking over that resistance level and closed on the high.

ERX is the 3X ETF for Oil & Gas companies, which has also exhibited the resistance level. Today, it close at that level, but did not peak over. It appears either or both may be poised for a profitable run.

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