ProShares Ultra S&P500 Is Close to Important Technical Levels
Published on Friday, 28 December 2012 08:28 Written by TradersHuddle Wire
New York, December 28th (TradersHuddle.com) - Shares of ProShares Ultra S&P500 (NYSE:SSO) closed the session at $59.62, near the 50 day and 200 day moving averages currently set at $59.07 and $57.07 respectively. ProShares Ultra S&P500's price action is above these important levels, which could materialize into a trading opportunity.
ProShares Ultra S&P500 (NYSE:SSO) is a fund that seeks daily investment results that correspond to twice the daily performance of the S&P 500 Index. The S&P 500 Index is a measure of large-cap U.S. stock market performance, which includes 500 United States operating companies and real estate investment trusts selected by the S&P U.S. Index Committee through a non-mechanical process that factors criteria, such as liquidity, price, market capitalization and financial viability.
Although, the price action is above these moving averages, it's important to highlight that the 50 day moving average is currently above the 200 day moving average. This signals that the stock is not technically broken from the long side and buying the dip strategy might be the best setup to follow.
The peaks and troughs algorithm show calculated support at $53.38 and calculated resistance at $62.26. These levels should also be evaluated by traders when planning their next move, as they provide an insight into the latest price action.
If traders want to establish a position on ".$shcompname." they need to do it as close to the moving averages as possible. Also, they need to consider the latest range defined by the peaks and troughs algorithm, not forgetting that if the stock had a wild move outside its range, it could take a few days for it to establish fresh support and resistance levels.