June 11, 2009 - HNU is HOT

WOW!!! What a day for HNU. The daily volume once again reached a high, indicating big interest in this ETF. Today's volume was accompanied by a surge in prices. Looking at the daily chart below, the presence of the 50day moving average as a major resistance line is re-enfornced as we failed to close above it, even though it was broken intraday.

However, the fact that we shot up from the drawn support line also re-enforces the 5.50 - 5.80 level as a well tested local support.



As discussed in the first post on HNU, price is getting squeezed between the 50day MA and the support line. Even though there is still no sustained breakout, today's move is a bullish one. Lets take a look at the (30 minute) intraday action over the past 14 days.


The chart above is great evidence of the presence of technical traders in the market that had put their sell orders resting at the top of the recent high.

I am watching this ETF very closely, as like toady, any move will be fast. Tomorrow will be a test for the recent high and the 50day moving average. Watch for false breakouts to the upside. As there are still a lot of sellers in this market, tops will be formed quickly.

I added to my position yesterday at 5.90, and will be looking for a sustained rally above 6.80 to add more. Tomorrow will be interesting......

Disclosure: I own HNU in my portfolio.