When the Price of Proshares Ultrashort Oil & Gas DUG Talks, People Listen

June 04, 2022, 19:15 pm ET, BY Patrick- Contributor, Stock Traders Daily| Editor: Thomas H. Kee Jr. (Follow on LinkedIn)

This is not EF Hutton, but it could be more #powerful.  A picture speaks a thousand words, they say, and the #priceaction of Proshares Ultrashort Oil & Gas (NYSE: DUG) tells an important story.  The movement tells us where investors perceive value, or the lack of it, and if we pay attention we can capture opportunity.  The data below for DUG can be used as an example, and demonstrate how to do this for other stocks too.  This data was current at the time of publication, but it is not updated in real time here. If you want real time updates, or data on a different stock, please get one here Unlimited Real Time Reports. 

Longer Term Trading Plans for DUG

• Buy DUG slightly over 13.99 target 21.26 stop loss @ 13.95 Details

The technical summary data tells us to buy DUG near 13.99 with an upside target of 21.26. This data also tells us to set a stop loss @ 13.95 to protect against excessive loss in case the stock begins to move against the trade. 13.99 is the first level of support below 15.61 , and by rule, any test of support is a buy signal. In this case, support 13.99 would be being tested, so a buy signal would exist.

• Short DUG under 21.26, target 13.99, stop loss @ 21.32 Details

The technical summary data is suggesting a short of DUG as it gets near 21.26 with a downside target of 13.99. We should have a stop loss in place at 21.32though. 21.26 is the first level of resistance above 15.61, and by rule, any test of resistance is a short signal. In this case, if resistance 21.26 is being tested, so a short signal would exist.

Swing Trading Plans for DUG

• Buy DUG slightly over 16.38, target 21.26, Stop Loss @ 16.33 Details

If 16.38 begins to break higher, the technical summary data tells us to buy DUG just slightly over 16.38, with an upside target of 21.26. The data also tells us to set a stop loss @ 16.33 in case the stock turns against the trade. 16.38 is the first level of resistance above 15.61, and by rule, any break above resistance is a buy signal. In this case, 16.38, initial resistance, would be breaking higher, so a buy signal would exist. Because this plan is based on a break of resistance, it is referred to as a Long Resistance Plan.

• Short DUG near 16.38, target 15.08, Stop Loss @ 16.43. Details

The technical summary data is suggesting a short of DUG if it tests 16.38 with a downside target of 15.08. We should have a stop loss in place at 16.43 though in case the stock begins to move against the trade. By rule, any test of resistance is a short signal. In this case, if resistance, 16.38, is being tested a short signal would exist. Because this plan is a short plan based on a test of resistance it is referred to as a Short Resistance Plan.

Day Trading Plans for DUG

• Buy DUG slightly over 15.83, target 16.38, Stop Loss @ 15.79 Details

If 15.83 begins to break higher, the technical summary data tells us to buy DUG just slightly over 15.83, with an upside target of 16.38. The data also tells us to set a stop loss @ 15.79 in case the stock turns against the trade. 15.83 is the first level of resistance above 15.61, and by rule, any break above resistance is a buy signal. In this case, 15.83, initial resistance, would be breaking higher, so a buy signal would exist. Because this plan is based on a break of resistance, it is referred to as a Long Resistance Plan.

• Short DUG near 15.83, target 15.31, Stop Loss @ 15.87. Details

The technical summary data is suggesting a short of DUG if it tests 15.83 with a downside target of 15.31. We should have a stop loss in place at 15.87 though in case the stock begins to move against the trade. By rule, any test of resistance is a short signal. In this case, if resistance, 15.83, is being tested a short signal would exist. Because this plan is a short plan based on a test of resistance it is referred to as a Short Resistance Plan.

DUG Ratings for June 04:

Term →	Near	Mid	Long
Rating	Weak	Weak	Weak
P1	0	0	13.99
P2	15.31	15.08	21.26
P3	15.83	16.38	29.13

Support and Resistance Plot Chart for DUG

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