On Financial Tides we realize there many 2 reasons to buy ETF's. You can make plays on the economy, the underlining fundamentals of a particular industry or country or just plain technical analysis.
DGL the Proshares double Gold ETF is just such a technical play. Gold has been rising and this ETF gives you leverage.
Right now DGL is within .33% of its recent high and has seen 4 new highs in the last 5 days and 6 new highs in the last 20. It's had an 18.41% price appreciation in the last 65 days.
BarChart's technical analysis indicators have a buy signal on 13 out of 13 indicators for a 100% buy signal. Over on Motely Fool the CAPS rating by their readers is 105 to 10 in favor of a further price increase.
Recommendation: If you think gold will go up and the dollar will continue to weaken then DGL the Proshres double Gold ETF is a buy at 40 with a protective stop loss no higher than 37.
Jim Van Meerten is an investor who writes on financial matters here and on Financial Tides. Please leave a comment below or email FinancialTides@gmail.com
Disclosure: I hold no positions in DGL at the time of this publication
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