DUG Divergence

Take a look at the DUG chart below. Notice that RSI has made a higher low while price action has made a lower low. The ETF, which is short oil and gas, is also extremely oversold. I took a small position this morning.

5 thoughts on “DUG Divergence

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  1. I’ve been trying to research this fund to see how and how well it meets its objective of returning twice the inverse of the DJ Oil & Gas Index.Looks like they credit default swaps to do this.Do you think this is a good vehicle for shorting oil?

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