ETF Market Trend: DXD is Still on a Downtrend
Written by Taurus on September 17, 2009
The UltraShort Dow30 ProShares (DXD) is an ETF that seeks daily investment results corresponding to twice the inverse of the daily performance of the Dow Jones Industrial Average index.
Technical analysis of the DXD daily chart shows an unbroken downtrend since the ETF hit a historical high of $111.09 back in Oct 08. The hourly chart below shows a similar, downward pattern, but it also reveals a well-defined channel in which the price is moving. Based on this channelled movement, we can conclude that prices will likely test the lower trend line of the channel, and find some support at $34.00. A buy signal will only be triggered if prices manage to break above the channel’s upper trend line, supported by a strong volume increase.
ETF Market Trends: DXD Trading in a Downwards Channel (Hourly Chart)
Personally I would not buy any stock or ETF that is currently in a downtrend. Do take note that even if prices manage to break upwards out of the channel, the overall trend is still down. I would not suggest to people who have not bought yet to rush into this ETF unless a definite uptrend can be established.
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