Technicals Show Why It May Be Time To Sell This Financial ETF (UYG)

“For six months, The ProShares Ultra Financials ETF (UYG) traded within the confines of a rectangle bounded by support at $5 and resistance at $6.30,” Sam Collins Reports From Options Zone.

On March 11, Collins said, “Following a period of very high accumulation, this ETF appears to be breaking from a triangle with supporting evidence of the break coming from the crossing of the 50-day moving average by the 20-day moving average. If successful, the target for a trade in (UYG) is $7.25 to $7.50.”

“For those who bought (UYG) and made a profit, it is time to cover. This ETF could go higher, so perhaps a trailing stop is best, but there is never anything wrong with taking a profit,” Collins Reports.

Here are some details on the ProShares Ultra Financials (UYG) below:

The investment ETF (UYG) seeks daily investment results, before fees and expenses, which correspond to twice the daily performance of the Dow Jones U.S. Financials index. The fund normally invests 80% of assets in financial instruments with economic characteristics that should be twice the return of the index. It may employ leveraged investment techniques in seeking its investment objective. The fund is nondiversified.

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