Friday, March 2, 2012

BOIL Ultra Long ETF Natty Gas Daily Chart Falling Wedge Positive Divergence

BOIL is a dangerous ETF seeking to perform twice the move to natty gas on the long side. Keystone remains a fan of natty gas for 2012 and entered BOIL today on the nice positive divergence shown by the blue lines. The weekly chart is positively diverged as well. Note the blue falling wedge which also bolsters the bullish case. Note the large selling volume over the last few days, these are traders that can no longer take the pain of holding BOIL as it drifted ever lower, all they could yell is 'get me out!' That is typically the time to pick it up for a long trade since it looks like capitulation. There may be a stutter step here in the green circle but she should launch anytime.

Projection is for a bounce off the positive divergence and falling wedge and continued sideways to sideways up from here. Remember, these are dangerous plays and only to be entered if you are willing to lose your money. BOIL is somewhat thinly traded at 170K shares in today's current print so keep that in mind as well.  Keystone likes UNG and BOIL. 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.

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