Is it time to short Oil and Gas?  DUG is an ETF from ProShares that does exactly that and based on today’s news of oil passing $126 bucks it might be time to short?

This idea was spawned by this post on Break Out Watch and it made me want to check into DUG just to see what the chart has been up to.

While I’m not going to make any predictions (because I have no idea wtf oil/gas are going to do) here are my thoughts:

There is definitely positive divergence on both the RSI and MACD.  MACD is looking a little weak, but still trending upwards.  STO is looking like it’s about to have a pretty aggressive upward cross.  And finally, the price pattern has formed the begining of a W pattern which I like very much.  W patterns are basically a double bottom that picks up after the second bottom… For DUG we have to wait and see what pans out.

The volume has really been picking up in recent days, so it seems that movements should be pretty aggressive.

It will be interesting to see how DUG pans out over the next couple weeks.