SDP UltraShort Utilities Weekly Chart Oversold Falling Wedge Positive Divergence

SDP is a thinly-traded inverse ETF for the utilities so it moves up if the utes move down. Note the collapse shown by last weeks' red candle as the utilitites moved higher. The green wedge and positive divergence was highlighted as November began and the rocket launch followed as expected. Price has now returned lower forming the purple falling wedge and postive divergence so it is time for another launch. The MACD histogram has now joined the postive divergence party as well.

Lots of buyers entered in November as the utes received their negative divergence spank down as shown by the large volume candle. Thus, there are many holders of SDP now in the 34-38 zone. After the pop, some traders stuck around too long, forgetting to take their money at the window and gittin' out of Dodge while the gittin' was good. So when price comes back up, those traders, may be inclined to exit their positions between 34-36 so that serves as a handy initial target, then, after that, SDP would come back down again to continue to base, then another move up. Projection is for SDP to move sideways to sdieways up for the weeks and months to come as the utilities (UTIL, XLU) move sideways to sideways down.This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your financial advisor before making any investment decision.