February 27, 2013 (by Frank Kollar)
Has the Powershares US Dollar ETF (NYSE: UUP) begun a sustainable uptrend?
UUP bottomed in 2011 at the $21 level and reached $23 a share in mid-2012. But since then shares dropped back down to $21.50, before this current rally. At the time this analysis is being written on Feb 26th, UUP is trading at $22.35.
The rally off $21.50 support (this level held attempts to selloff four times in the past four months) has reached important resistance levels.
Chart Courtesy of StockCharts.com
$22.33 is the 50% retracement resistance level from the lows and UUP is there now. Most likely UUP will test the next resistance level at $22.52. This is the critical 61.8% level.
UUP has also closed above the previous November rally high at $22.24.
If UUP makes a decisive close above $22.52 in coming days or weeks, we look for a sustained advance to test the mid-2013 highs at just over $23.00 a share.
The Fibtimer.com (http://www.fibtimer.com) ETF Timing Strategy does not have a position in Powershares US Dollar.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.