Thursday, June 10, 2010
UPDATE: Rising natural gas futures brought HNU up past its resistance at $6.4 and made a strong upward movement. Since then, it has bounced off the bolinger band and is comming back down toward this resistance level. After this breakthrough, it is likely that the price will bounce off of these lows and head back up to our price target at $7.9. This is the next resistance level.
WHEN TO GET IN: A great indicator in technical analysis is to look for a bounce back off the resistance levels to test its strength. After an uptick from $6.4, this is a good indicator to buy.
RISK LEVEL: Because HNU is a 2X leveraged ETF, it is not reccomended for investors with a buy and hold strategy. For this reason, I would reccomend investing for a short term gain and getting out while your ahead. Remember that the next resistance level is at $7.9 so holding it into that resistance could be risky.