BOIL rises into reversal territory SHORTBOIL as a triple leveraged ETF of natural gas futures- has high volatility
which can translated to high profits for traders who can accurately harness
that energy .On the 2H chart in the time since the reverse split, the price has mostly
ranged up and down between the first upper and lower VWAP lines of the
VWAP anchored to the high in May. Occasionally it has ranged outside those bounds
and then reverts to the mean VWAP. Price is presently at or near the first upper
derivation line where it typically pivots down. The zero lag MACD is suggestive
of an impending pivot down before any signs of it and thus showing bearish divergence.
The mass index is not yet suggesting a reversal. The shorter HMA 56 rising significantly
above the HMA210 is suggestive of overextension into the overbought overvalued
zones of the chart.
Overall, I will put BOIL on watch.
Once a reversal is confirmed I will either short BOIL or long KOLD. Leveraged funds being
what they are and mathematics fixed and hard, shorting a levearged ETF is a faster fall
than its rise so the short position will be my first choice.
