BOUGHT +34 DUG @30.00
I entered a short to hedge my longs as planned. I have been trying SKF a few times previously but keep getting stopped out. So I’m giving a shot at DUG this time around. Today S&P broke down to the bottom of my up channel again. We could very well bounce back, but I needed to hedge my position as planned.
Ultrashort Oil & Gas
Upside: Positive divergence on the daily. Strong support at $30. Unfilled gap above $34.
Resistance: $31
Downside: Still in downtrend. EMA shows downtrend gaining momentum. Oil broke recent downtrend too.
Support: $30
Bottom line: This is a short hedge to safeguard my longs if the market do break down from here. As I noted before, this is a distinct possibility I need to account for. I intend to hold this for several weeks.
Target: At least $34.
Stop: Observe $25-$26 level.
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