Movin' on UUP
The U.S. dollar has been in a stealthy uptrend for the past year, a modest move that is reflected on the chart of the PowerShares DB US Dollar Index Bullish Fund (UUP).
PowerShares DB US Dollar Index Bullish Fund (UUP) -- Weekly Source: StockCharts.com View Chart » View in New Window »On the weekly chart, a dramatic decline can be seen taking the UUP down from its October 2008 high to the October 2011 low. But after a six-month basing period, price has managed to move off the recent low and initiate a series of higher highs and higher lows. A solid uptrend line has formed in the process, and after the July high tested the 38% retracement level of the 2008 high/2011 low, a pullback is testing that support line again. There are several important technical indications on this chart. The vertical green lines are cycle lines, and they mark a series of 17-month cycle lows. Coincident with the trendline test and an oversold reading on the Williams %R indicator, price is currently scheduled for another cycle low. Volume has been pathetic, but the Money Flow Index, which is a volume-weighted relative-strength indicator, is in an oversold condition. In the past, this reading has been followed by positive price movement....157 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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