ERY Energy Bear 3x ETF Daily Chart Oversold Falling Wedge Positive Divergence
Keystone opened a new long position in ERY today. This is the triple X energy short. Note the falling wedges in place and oversold conditions. Of great interest today is the lower low that printed. This occurs with all the indicators positively diverged as shown by the green lines. So, Keystone is giving it a whirl, perhaps it will pop tomorrow. The trade is the same as the last go-round; add if ERY falls, will take profits if it launches, which is what the positive divergence indicates should happen. The weekly chart is positively diverged as well which also points to upside ahead. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.
Added some at 8:16
ReplyDeleteI recalled KS said ERY will fall to 7.75-8.00, so watch and wait, may be Friday. We'll see.
ReplyDeleteMCAP and Anon, you both are correct. Price may move to 7.75-8.00, this is due to Keystone's 80/20 rule where 8's move to 2's and 2's move to 8's, so the rupture of 8.20 places 7.80 on the table and typically price may overshoot the downside a bit, hence, the 7.75 number. However, the weekly ERY chart is now lined up with positive divergence. The daily chart is lined up with positive divergence as well which is an awesome combination. Thus, an entry at these levels appears prudent. As always, with trading, scaling in is always wise, so if price does choose to move lower, further adds can be made. ERY appears attractive moving forward which forecasts weakness in the energy sector, perhaps deflationary concerns will resurface.
ReplyDeleteThe triple X crack plays are extremely dangerous ETF's so always buy an extra shirt if trading any of them, since your current shirt may be lost.