$DIG Weekly Long Set up51.81 would be confirmation for me. I like this set up and looking at purchasing 3 Jun16/23/70/C contracts monday.
251 long term target based off measured move from bullish triangular set up.
tradethatsetup@wokereverend
DIG trade ideas
DIG, MACD Histogram just turned negativeThis is a Bearish indicator signaling DIG's price could decline from here. Traders may explore shorting the stock or put options. Tickeron's A.I. dvisor identified 49 similar cases where DIG's MACD histogram became negative, and 45 of them led to successful outcomes. Odds of Success: 90%. Current price $84.92 is above $81.16 the highest support line found by Tickeron A.I. Throughout the month of 12/21/20 - 01/25/21, the price experienced a +17% Uptrend, while the week of 01/15/21 - 01/25/21 shows a -5% Downtrend.
Bearish Trend Analysis
The Stochastic Indicator may be shifting from an upward trend to a downward trend. Tickeron A.I. detected that in 53 of 64 cases where DIG's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 83%.
The Moving Average Convergence Divergence Histogram (MACD) for DIG turned negative on January 25, 2021. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 49 similar instances when the indicator turned negative. In 45 of the 49 cases the stock turned lower in the days that followed. This puts the odds of success at 90%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where DIG declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 89%.
DIG broke above its upper Bollinger Band on January 12, 2021. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Sweet Heart Play : Call Contracts on DIGThis could be a 50:1 play. Even a 750:1 play if the price of oil were to skyrocket.
What you are looking at is the price of a Proshares ETF named DIG which is supposed to move at 2X the price of oil. It doesn't and does have decay problems but the correlation in price movement between it and OIL was actually very good within -3% to 5%. So if oil jumped 25%, DIG would jump a minimum 20%.
Right now the price on a $9 Strike with a Sep 18, 2020 expiry is listed for $25 / contract or $0.25 / share.
finance.yahoo.com
Oil MUST stay below $30 for these to remain OTM (Out of the money).
What about there being no OPEN INTEREST on these contracts. What people do not know about Options is the OCC MUST offer you the intrinsic bid on any contract even if open interest is 0 - and execute the contract at any time you which to close it. Very few people know this.
Now in the hypothetical situation where a supply disruption due to geopolitics occurs and oil goes to $200 and lets say that the ETF matches and just goes to $200, what happens to these contracts? They would be $191 in the money and therefore would sell for $19,100 / contract that you bought for $25 (add a dollar for the purchasing fee). That would be a 750:1 return on investment.
Dangers? Its sibling ETF 3X OILU just went to $0.02 and is being de-listed tomorrow. But! Because of the high volume ingesting INTO DIG as it sold off I think this one will survive and bounce back hard.
As the nomenclature warns - only invest risk capital.
DIG Short as Oil CollapsesAs the price of oil falls, we expect Oil ETF's to fall in line with it. Note this chart pattern indicates a breakout imminent either way. The Fibonacci levels give some intermediate profit targets before the point of support around $30.
