When Proshares Ultra Financials (UYG) Moves Investors should Listen

July 01, 2022, 04:00 am ET, BY Thomas Y.- Contributor| Editor: Thomas H. Kee Jr. (Follow on LinkedIn)

How do we know what is going on #behindthescenes of a company?  According to Stock Traders Daily, a 20-year #financialindustry innovator, the best way to do this to to watch the price action in the stock. The  Proshares Ultra Financials (NYSE: UYG) report below is a real world example. Included are trading plans for UYG, but this report is static. If you want an update, or a different stock, please get one here Unlimited Real Time Reports. 

Longer Term Trading Plans for UYG

• NONE. Details

There is no current Support Plan to trigger a buy of this stock at this time. This usually means that there are no clear support levels at this time, so buying the stock as it falls could be considered catching a falling knife. Buy signals only exist if resistance breaks higher.
This often is a signal that the stock you are watching is weak. Waiting for a turn higher may be more intelligent than trying to catch a falling knife. In any case, new support levels are usually revised to the database at the beginning of the next trading session.

• Short UYG under 51.56, target n/a, stop loss @ 51.71 Details

The technical summary data is suggesting a short of UYG as it gets near 51.56, but the downside target is not available from the current data. This tells us to hold that position if it is triggered until a new downside target has been established (updates occur at the beginning of every trading session) or until the position has been stopped. The summary data tells us to have a stop loss in place at 51.71. 51.56 is the first level of resistance above 43.15, and by rule, any test of resistance is a short signal. In this case, if resistance 51.56 is being tested, so a short signal would exist.

Swing Trading Plans for UYG

• Buy UYG slightly over 44.35, target 51.56, Stop Loss @ 44.22 Details

If 44.35 begins to break higher, the technical summary data tells us to buy UYG just slightly over 44.35, with an upside target of 51.56. The data also tells us to set a stop loss @ 44.22 in case the stock turns against the trade. 44.35 is the first level of resistance above 43.15, and by rule, any break above resistance is a buy signal. In this case, 44.35, 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 UYG near 44.35, target 38.80, Stop Loss @ 44.48. Details

The technical summary data is suggesting a short of UYG if it tests 44.35 with a downside target of 38.80. We should have a stop loss in place at 44.48 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, 44.35, 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 UYG

• Buy UYG slightly over 44.35, target 45.51, Stop Loss @ 44.25 Details

If 44.35 begins to break higher, the technical summary data tells us to buy UYG just slightly over 44.35, with an upside target of 45.51. The data also tells us to set a stop loss @ 44.25 in case the stock turns against the trade. 44.35 is the first level of resistance above 43.15, and by rule, any break above resistance is a buy signal. In this case, 44.35, 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 UYG near 44.35, target 42.65, Stop Loss @ 44.45. Details

The technical summary data is suggesting a short of UYG if it tests 44.35 with a downside target of 42.65. We should have a stop loss in place at 44.45 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, 44.35, 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.

UYG Ratings for July 01:

Term →	Near	Mid	Long
Rating	Weak	Neutral	Weak
P1	0
P2	42.65		0
P3	45.51		0

Support and Resistance Plot Chart for UYG

Real Time Updates for Repeat Institutional Readers:

Factset: Request User/Pass

Bloomberg, Reuters, Refinitiv, Zacks, or IB users: Access Here.