ProShares Ultra Oil & Gas (DIG) — This exchange-traded fund (ETF) seeks daily investment results that correspond to twice the daily performance of the Dow Jones Oil & Gas Index.
On March 20, at just under $22, I wrote, “Although the index is still in a down-trending consolidation, demand for crude oil and precious metal could drive DIG higher. A break above the 50-day moving average at $24 would likely lead to a test of the recent highs at $31 to $33, and even to a run up to more than $50.”
On May 11, at $29, I wrote, “Not only did DIG break above its 50-day moving average, but it broke out of its consolidation, and appears headed first to the 200-day moving average at $40 and then north of $50.”
Yesterday, it ran into the 200-day moving average and appears to have enough momentum to break through it. As before, our targets are first $40 and then higher.
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Sam Collins is a registered, fee-based portfolio manager who may be contacted at samailc@cox.net. You can also check out an archive of some of his most recent market outlooks.
