Here we analyze UYG using the charts.
In past 1 day, UYG went up quite a bit.
So we need to analyze that if one did not take any position, what should be the next move. Or, if positions were taken, then should they be unloaded.
As a day trading candidate, with 5K shares, a 20 cent move accounts for 1K before commisions. For the long term position takers (based on previous posting) with covered calls, UYG has already given a nice % return & such movements can be ignored through expiration because they are in positive territory with a low cost basis from the spreadsheet.
Let us analyze the chart that is attached here. UYG is approaching a cluster of past resitance indicating that there will be sellers who will take a profit & there may be a pullback in this upward movement.
Also, the S&P futures dropped alot in overnight trading after the so called rally of S&P on last day of trading.
So it may be best to wait & watch to see if it pulls back to the levels of 5.7 to 5.9, which should be the case base on various Fibonacci retracements plotted or further wait till it even pulls back down to 5.4.
On the upside, if it moves upward & breaks through 6.4, then it may March towards 6.8 or 6.9
The fact that it moved up more than 10% in just 1 week, & the charts indicate resitances, the probability is that there will be a pullback.
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1 comment:
Excellent information InvestingStyles on UYG. In looking at the graph and your data point, I'm interested in learning how you derive in those numbers such as 5.7, 5.9, 5.4, etc. Also, it seems that you are jotting two Fibonacci indicators in a month graph of Dec. Why just a month? Why not 3 months or 6 months? Is it because 1 month is used due to Option Trading expiring on a month to month basis? I understand the 6.4, 6.8, and 6.9 numbers. Again, thanks for the information as I'm looking to load up more UYG...but at what price?
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