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In the June 5th edition of The Wagner Daily, we stated that, “…the ProShares UltraShort Oil and Gas ETF (DUG) formed a distinct bearish reversal candle and could offer a buying opportunity on a pullback into support near its 10-day and 20-day moving averages. On a pullback buy entry, we look for an ETF to undercut a key moving average or support level, and form a reversal candle. The reversal candle then serves as the pivot for a possible trade entry. In this example, the potential long entry would occur on a move above the reversal candle (See June 5th chart below).” Yesterday, on high volume, DUG sold off sharply and closed just above its 20-day. If DUG can undercut its 20-day EMA and form a reversal candle (See second chart of DUG below), it could offer a possible buy entry above the high of that reversal bar.

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