UYG short term bounce next week?

Posted by Investing Freak on February 20, 2009
General

If you looked at my previous post I called for a break of support for S&P 500.

I didnt really set a target below but Matt Trivisonno had called this low back in October.

 768.67 – Coming Soon to a Screen Near You  … a screen about 18 inches in front of your face that is. 768.67 was the S&P 500 intra-day low on October 10, 2002. That was the day that the last bear market ended.

Since that Call was made almost 5 months ago and things have gotten even worse now.. I don’t think the bear market will end here.

The interesting stock of the day is UYG
I have been looking at Fibonacci numbers lately and UYG has 2 targets which it hit.    One was at $2.39 and the otheer at $1.95.
I loaded up at 2.43 with an idea of doubling down at 1.95 but missed the the boat.
      If 1.95 is really a reversal zone there are a few projected upside targets.  Probably strongest resistance will be at
$2.61  (38.2% fib value)
$3.05  (61.8% fib value) also that would fill the gap-down UYG had on February 17  which could mean UYG then is free to begin another leg down to -zero-.
      If i were to be bullish on this ETF (which I am not at the moment)  other resistances above are $3.37  and the extreme $4.29.  I do not see these last 2 prices near term however.

Here is the chart to show you what I am looking at. Note: projected upside values are not shown.  (Click to Enlarge)

uyg-fib-retracement-feb20-2009

Sources:
Matt Trivisonno (768.67-Coming Soon to a Screen Near You)

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