DUG Ready to Make Good on That Wedge?
Posted on July 02, 2008 at 12:55 PM EDT
It's been awhile coming, DUG has been outside of the descending wedge and ready to retrace it's path back up toward $45-$50. DUG has spent more time than I'd like to see, trading somewhat laterally beside the apex of the descending wedge. Today however, may just indeed shape up to be a Key Reversal Day to the upside. All of the prerequisites are in place, we have a gap down with a significant low being made, we have what appears to be rather large volume shaping up on the day and what may just be a close above yesterday's close. More than that, we have a retest of the lows from May 21st, and DUG failed to attain those lows, instead finding support above, yet still providing enough of a shakeout below a recent trading range to shake loose any dead weight and allow the serious traders to pick up some shares on the cheap. Even more important than that, at least to me, my 3C indicator ( provides an insight into the state of accumulation/distribution in a stock/ETF/Index) on an hourly time frame, has attained a rather impressive leading divergence to the upside. It is a really exciting looking chart from my perspective and I believe the long wait may actually be drawing to a close. Having difficulty uploading it now, I'll get up up after market close.