ProShares Ultra Russell 2000 Value ETF (NYSE: UVT) — This leveraged exchange-traded fund (ETF) seeks daily investment results that correspond to twice the daily performance of the Russell 2000 Value Index.
This chart shows that despite the current rally, the bearish resistance line is still intact.
But the recent bounce from around $19 following a Collins-Bollinger Reversal (CBR) buy signal could pop UVT to resistance at around $24.
Note the open gap at $20.04 to $20.20. Gaps in trading like this are most often filled and could provide an excellent opportunity to get aboard for a ride to $22 to $24.
UVT is for traders only. The SEC has determined that “ultra” funds are not appropriate long-term investments and that they are designed for short-term trades.
UVT carries greater risk than an ordinary ETF, so traders should use stop-loss orders. Finally, the margin requirement for most leveraged ETFs is 100%, but check with your broker before entering an order.
If you have questions or comments for Sam Collins, please e-mail him at samailc@cox.net.
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