Today I got an anonymous comment from a reader suggesting that I take a look at ProShares UltraShort Financials (SKF). The RSI (14) and MACD were referenced in the prediction that SKF might bottom out this Friday. So, let’s take a look at SKF!
For starters, here is some information on the Financial Sector.
SKF closed this afternoon at $93.15. The 52-week high is $303.82 and the low is $87.00. Simply from the price data, we can see that SKF is on the bottom of the range.
Next, let’s look at some charts of SKF:
Click To Enlarge - SKF Long Term Chart
I’ve got 3 points of interest marked on the chart above. These 3 points are where the MACD reached extreme lows. Further analysis of these points can be found below. Also, the major trend that SKF is following is marked. It has broken the trend but is still within range to be a false breakout.
Click To Enlarge - SKF Intermediate View
Click To Enlarge - SKF Short Term
Conclusion:
After this analysis, I think it is definitely an opportunity. Be cautious though, there has been a lot of volatility lately so you could easily jump in on a bad day and lose 5-10%.
Lastly, I would like to thank my anonymous commenter for your heads up. Please comment with any criticism or comments on my analysis along with the significance of Friday in your prediction!
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