The overall base-like pattern carved out by the Ultra Oil & Gas ProShares (DIG) during the past 3 months appears to be maturing now. The upmove off of the December 24 low at 24.46 to the January 6 high at 34.79 appears to be the central upleg off of the November 20-December 5 double bottom at 21.42-21.71. The decline from 34.79 into this morning's low at 29.63 should represent the correction of the prior upleg, which if complete (at 29.63) argues that another upleg is approaching quickly that will propel prices to retest 34.80-35.00 in the upcoming days. Only a break below today's low at 29.63 will weaken my immediate outlook, but a break below 28.60 is needed to compromise my overall constructive technical work on the DIG.



Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com, a real-time diary of his technical chart analysis and trading alerts on all major markets. For more of Mike Paulenoff, sign up for a free 15-Day trial to his MPTrader Diary by clicking here.