Are the financials finally out of the woods? If they are or if not is really not that important. If you are a technical trader, then you will see that the charts don’t lie.
The chart shows that this stock (UYG) is in a volatility squeeze. The stock has formed a descending triangle. The hope is that the stock will break to the up side through the resistance – passing the volatility test. Any trade I do will be above the upper resistance line, showing that the stock has passed the volatility test.
I have marked where I believe this stock is headed – the $4.50 to $5.00 price target. If you look at the dotted red line (the support level) you will see that the stock is sitting at a key support level. If the stock was to break down below the support level then this would be a Bear Trade. Keep in mind the stock is trading at a huge discount allowing you to get into the financials at rock bottom prices.
Click on the chart:
Whether or not I believe the market is at a key point is irrelevant to me because I am a technical trader. I take what market gives me. I trade the charts not the companies.