VelocityShares 3X Long Crude ETN (NYSEARCA:UWTI)

Posted by: : Shayne HeffernanPosted on: February 3, 2015 VelocityShares 3X Long Crude ETN (NYSEARCA:UWTI)
 

VelocityShares 3X Long Crude ETN linked to the S&P GSCI Crude Oil Index Excess Return (NYSEARCA:UWTI)

VS 3X LONG CRUDE closed up 0.870 at 4.270. Volume was 569% above average (trending) and Bollinger Bands were 77% narrower than normal.

Open High Low Close Volume___
3.590 4.320 3.550 4.270 40,077,600

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 2.96 6.18 24.22
Volatility: 205 190 112
Volume: 27,437,728 10,679,571 2,700,300

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

We have some big UWTI trades lined up for this week, Trade FX, Equities and Options with the World’s Leading Platform Open an account here , call us at 312 219 1354, or email us to get started.

On 2/3/2015, VS 3X LONG CRUDE closed above the upper band by 16.6%. This combined with the steep uptrend suggests that the upward trend in prices has a good chance of continuing. However, a short-term pull-back inside the bands is likely.

Bollinger Bands are 75.02% narrower than normal. The narrow width of the bands suggests low volatility as compared to VS 3X LONG CRUDE’s normal range. Therefore, the probability of volatility increasing with a sharp price move has increased for the near-term. The bands have been in this narrow range for 17 period(s). The probability of a significant price move increases the longer the bands remain in this narrow range.

Summary

VS 3X LONG CRUDE gapped up today (bullish) on heavy volume. Possibility of a Breakaway Gap which usually signifies the beginning of a major market move. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.

VS 3X LONG CRUDE is currently 82.4% below its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect volume flowing into and out of UWTI.K at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on UWTI.K and have had this outlook for the last 7 periods.

HEFFX Candlesticks

A big white candle occurred.

This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support.

Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.

During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 19 white candles and 30 black candles for a net of 11 black candles.

A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend.

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.

HEFFX Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 93.8144. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 2 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 51.44. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 2 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 228.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 2 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 29 period(s) ago.

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Profile photo of Shayne Heffernan
Shayne Heffernan holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.

Trade FX, Equities and Options with the World's Leading Platform Open an account here , call us at 312 219 1354, or email us to get started.

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