Courtesy of David at Oxen Group
Buy Pick: ERY – Direxion Daily Bear Energy ETF
The Oxen Group, for Monday, is looking at what may be a bearish day. The lack of economic data, fears of inflation rates, a lack of stable economic data, and a lack of major news and economic data tomorrow may hurt the ability for prices to move up. Further, this should hurt the ability for oil to move up. Oil prices were falling in Asia on Monday, and Asian commodity expert Ken Hasegawa said this price drive should be ending and moving back to $65 per barrel. The price drive has not been on fundamentals and profit taking should occur very soon. The Oxen Group agrees that profit taking will happen this week, and in a bearish market, that will occur much more likely. Gas prices jumped seventeen in the last two weeks, which is anther sign that a pullback is in the works, as the rise is not at all based in fundamentals. With this said, Direxion Daily Energy Bear ETF (ERY). This ETF moves at a high volatility, meaning that oil’s move backwards will be even more beneficial to you. If fundamentals are not enough for you, technically, a pullback is necessary. Oil is overvalued, overbought, and moved too high, too fast. ERY is extremely undervalued on Relative Strength Index, has moved way too low on fast stochastics, and near its lower bollinger band. These technicals show a sign that the prices should moving back up. Oil prices should take profits from the gains last week. Get into ERY tomorrow and rise the decline in oil prices.
Entry: Recommend buying within first 15-30 minutes.
Exit: We recommend exiting after a 2-5% increase.
Upper Resistance: 15.50
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