DZZ Gold Bear 2X ETF Weekly Chart

DZZ is a double gold inverse ETF so it moves twice the opposite direction of the gold price. The long term pain for DZZ is noticeable during the last two years as price has tumbled lower with gold price moving skyward. The red circle in the price chart corresponds to the 1920-ish high in gold. The blue positive divergence, falling wedge and oversold conditions bounced price strongly. The red circles also show that the RSI printed a lower low during that gold run to 1900+ so a lower DZZ price was demanded. The RSI received its wish only a couple weeks later which marked the bottom for DZZ and erased all the downside concerns.

As price moves up, the green lines are sloping upwards--with price still in the duldrums! This is very bullish for DZZ. The big breakout move occurs when price crosses up thru the 20 week MA at 4.81. This move would also constitue a breakout from the green sideways triangle providing more upside street cred. Interestingly, the DZZ daily chart is also favorable to higher prices and is currently testing the 20 day MA at 4.51. DZZ is printing 4.53 at this writing overtaking the 20 day MA which is bullish. The RSI moving above 50% on both the daily and weekly charts will also signal a continued upward move for price.

Projection is for DZZ to continue upwards for the weeks and months ahead, intial target is 6.5-7.0 if the breakout occurs, which means gold price will drop moving forward. GLL is another inverse gold ETF that moves the same as DZZ so this analysis would hold for GLL as well. 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.