Sunday, November 27, 2011

UUP (PowerShares DB US Dollar Index Bullish) at 22.43 A Potential Higher Low on the Weekly Chart Signals Further Upside (BUY)

UUP extended the rebound off the 21.07 low (27 Oct) on the weekly chart to seek a retest of the 22.62 high. The bullish MACD studies suggest further upside. A clean break above the latter (Resistance 1) would confirm the higher low at the 21.07 low and initiate the next upleg towards the 23.40/23.52 resistance zone (Resistance 2). Clearance above there would allow bulls to target 24.22 (Resistance 3).

However, in the event of a break below 21.58 (Support 1) would delay and reopens 21.07 (Support 2). Only a downside break there would avert the upside and expose the key 21.03/20.84 support zone for a retest (Support 3).

Trading Indication:
Short-term: Buy at 21.80 or lower;
Target at 23.52 and higher;
Stop Loss at 21.58 (1.0%)
Long-term: Possibly sell higher

No comments:

Post a Comment