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.
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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