PROSHARES TR (DUG)

SierraBlue (67.10) Submitted: 7/20/08 10:32 AM : Start Price: $33.33 DUG Score: 14.98

TeleChart Scan - Peter Worden Notes: DUG 07/15/2008 11:50 AM  - The price of oil is down big today, probably in something of a delayed reaction to President Bush's announcement yesterday. This has DUG in rally mode and looking very good on both the daily and hourly charts. I could see the positive development taking place yesterday, hence my original buy recommendation at 1:30 PM ET and my reiteration at 3:00 PM.

I like the short-term base which has formed across the May, June and July price lows. The selling climax, as evidenced by both TSV and MoneyStream came into the May lows. The indicators showed a relatively sold-out condition at the final low early this month followed by a surge of technical buying into the rally that ensued. The 100-day moving average (blue line) is an obvious level of overhead resistance right here, but is likely to be surpassed. -PW

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