DZZ Gold Double Short ETN Weekly Chart Positive Divergence

DZZ is an inverse of gold, thus, positive divergence here means a bounce is about to occur, but that means gold price will fall. Note the blue line positive divergence, as well as oversold conditions and a faling wedge, that bounced price in late 2010. This shows the first cracks in the gold story, but, in a blink of an eye, the Middle East turmoil hit as shown by the red circle so gold price jumped higher, the DZZ lower, and gold was off and running again.

The red lines now show the bottoming action taking place for DZZ, all indicators forecasting a price jump coming. Note the high volume candle a couple months ago but now, at a lower price, volume is less than one-half of that value. This says many of the long DZZ players have given up on gold falling--and that is typically when a ticker changes trend and in this case means up for DZZ.

Projection is up for the weeks and months ahead which corresponds to a lower gold price. MF Global, far smarter than Keystone, says gold is now going to hit 1660-1680. Keystone's projection for the weeks and months ahead is gold 1250-1450. Who do you think will be correct? 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.