UGAZ spiked up on fundamental news last week, but dropped aggressively on Friday to test for supply before breaking out higher. The large players are not willing to mark up prices until they are sure that all the selling has dried up and they did this by gaping prices down to force the bears to show there hand. The volume was so low which means the bears are not interested in selling and the institutions have bought as much as they could on Friday. Now that the big boys know that there's no more sellers, they will be confident in marking up prices to the next level to fill the gap or higher at 22. Then price may fall back down to test the breakout level or keep going if price fails to drop. My final target is at 27 which is the fair value price on the monthly charts. As long as traders are willing to pay above fair value then price will rise to $22.
Stop loss is at 14.50, first target at 21, then the rest at 22 for next week. Once price breaks out above 18.72, there's no major resistance until 22.
Price is also back to the level of before the bullish fundmental news and the fundamentals have not changed so we are buying at a bargain. Worse upside target is price going back up to 18.72 the day of the news release.
Stop loss is at 14.50, first target at 21, then the rest at 22 for next week. Once price breaks out above 18.72, there's no major resistance until 22.
Price is also back to the level of before the bullish fundmental news and the fundamentals have not changed so we are buying at a bargain. Worse upside target is price going back up to 18.72 the day of the news release.
