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Powershares U.S. Dollar (NYSE: UUP) Ready To Rally

|Includes: PowerShares DB USD Bull ETF (UUP)

October 28, 2010

Shares of the ETF Powershares U.S. Dollar (NYSE: UUP) are acting like they are ready to rally.

Back in March 2008 UUP reached lows of $22.00 a share. In November 2009 UUP reached lows at $22.02 a share.

On Friday, October 15, 2010, UUP reached a low of $22.17 a share. This level has stopped all declines for three years and every time it does so it becomes a stronger support level.

On Friday, October 15, UUP also had a bullish outside reversal day. A pattern typically forecasting that a change in trend either has occurred or is imminent. Since October 15 volume has doubled and has remained high.

UUP rallied through October 19 and then sold off, but to a higher low. UUP is again rallying and on Wednesday, October 27, it did so on triple the normal volume.

Putting a sell stop just below $22.00 a share, a bullish trade offers an excellent opportunity for strong upside gains.

The Fibtimer.com (http://www.fibtimer.com) ETF Timing Strategy does not currently hold a position in Powershares U.S. Dollar.



Disclosure: The Fibtimer.com (www.fibtimer.com) ETF Timing Strategy does not currently hold a position in Powershares U.S. Dollar.