FAZ: Here's how I'm playing it...
Since the drop from above $110 in March, FAZ has failed every test of the 10 MA. So the first positive sign to watch for on the daily chart is a close above the 10 MA. If I had a more significant position I would even think about taking some profits at the 10MA. Even before that though, there is a lap to fill at 6.25 and the gap fills at 6.537. Watch for support there if it gets through them. Above the 10MA there is resistance at 8.36. From 8.36 - 8.61 is another gap fill, and yet another gap above that from 8.97 to 9.27. Above that is the 20EMA at $10.57 currently, and dropping at a rate of about .50 - .60 a day.
All of the above can be useful on a move higher, but even before all of that, I'd like to see it establish a base above the last swing high price of $5.83 on the 5, 15 and 30 minute interval charts. If the flag being formed on those charts fell in a range of 5.80 - 6.00 I'd feel better about a move higher. Seeing the afterhours close of 5.18, along with the 8 point higher price of the S&P emini futures right now, doesn't give me the warm fuzzies either.
The only two current support areas I have for FAZ are the premarket low of 4.56 and the lows of regular market hours at 4.61. If I had a larger position I'd put a stop on it, but because I only have 100 shares I'll hold them.
I'll update as the picture gets clearer one way or the other if anyone is interested.
Unless otherwise stated, any and all information I post is my opinion which is subject to change. I accept no responsibility for anyone who chooses to take any action based upon anything I post.
