Alert: gold fails at technical support.
Let’s add DZZ now …
In Commodities Essential yesterday I noted what I was watching in the near-term technical picture for gold. Gold broke below the initial support levels I was watching. This presents an opportunity to get in and try to profit from additional downside.
Let’s add DZZ (PowerShares DB Gold Double Short ETN) as a short- to medium-term play to capture a sharp breakdown in gold prices. I am recommending a tight stop-loss on this position; seeing that this recommendation is based merely on the initial break of a technical set-up, I want to keep our risk minimal.)******
DZZ (Last Price: $4.54)
Buy shares of PowerShares DB Gold Double Short ETN, symbol DZZ, at the market. Then place an order to SELL ALL your shares of PowerShares DB Gold Double Short ETN, symbol DZZ, at $4.20, STOP. This order is good till cancelled.
[Please note this is a 2x-leveraged, inverse fund which means it will move roughly twice as fast, and in the opposite direction, as the underlying price of gold.]