Tuesday, June 30, 2015

Watch out for overhead resistance in [UVXY]

We are right up against it now.  Generally it will take a 3rd of 3rd to break through something like this so we often kiss it during wave 1 up, pull back and then gap up and through.  It potentially implies that the AM pullback was 4 not 2 and that the rally since could be 5.  It also could be that the AM pullback was 2 that the rally up until this resistance is 1 of 3, then we should pull back into 2 of 3 for a running start at this resistance to be smashed during 3 of 3.

I'm back on the sidelines until this either slushes through that line as if it were not there (that would be unusual, low probability) or pulls back again for a running start.

In any case, be careful here, this is significant technical resistance.

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