Stock Picks – PowerShares DB US Dollar Index Bullish Fund-UUP

   
Stock Picks – PowerShares DB US Dollar Index Bullish Fund-UUP

  

PowerShares DB US Dollar Index Bullish Fund (UUP) – This exchange-traded fund (ETF) seeks to track the price and yield performance, before fees and expenses, of the Deutsche Bank Long US Dollar Futures Index. 

03 22 10 uup Stock Picks   PowerShares DB US Dollar Index Bullish Fund UUPdmo chart key Stock Picks   PowerShares DB US Dollar Index Bullish Fund UUP 

On Dec. 18, at $23.01, I said, “Curiously, the UUP double-bottomed at $22.02 on Nov. 25 and Dec. 1, closing [Dec. 17] at $23.03 after plowing through its 20- and 50-day moving averages on very high volume. From a technical point of view, it looks like the dollar has bottomed.”

And on Jan. 19, I said, “The dollar rallied, popping from its 20-day moving average on a gap-open. But UUP must close over $23 and then move above the 200-day moving average before a change in trend can be firmly recognized. Currently, though, the chart is in favor of a bullish turnaround with a target of $25-plus.”

The rally in early February accomplished both of these tasks, and the gold cross in late February and last week’s reversal from the 50-day moving average are confirmation that the trend for the dollar has changed to a strong bull market.

Buying volume is high, and the stochastic issued a buy signal Wednesday. The target for UUP remains at $25-plus.

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Article printed from InvestorPlace Media, http://investorplace.com/2010/03/stock-picks-powershares-db-us-dollar-index-bullish-fund-uup/.

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