TZA Small Cap Bear 3x ETF Weekly Chart Positive Divergence

TZA inverse ETF showing a nice positive divergence bottom setting up. The blue lines show the positive divergence in place now, thus, price will want to bounce higher from here and overall, price is basing now. This moving up means the broad markets will move lower for the weeks and months ahead.

Note the red circles where the RSI printed a touch lower in April 2011 as compared to April 2010, and, money flow where December 2010 was a lower print than May 2010. Both of these were forecasting that price needed to come down for one more matching or lower low, and as of July 2011, now, price has satisfied that request. Also note the capitulative selling volume over the last month. Many traders in TZA threw up their arms, and ran for the exits, giving up on the trade. As always, just when the majority give up, that is the way the ticker will move.

Projection is that price is basing now as this rally plays out, positive divergence will bounce price, overall, price will move sideways to sideways up moving forward which means weaker broad markets in the weeks and months ahead. 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.