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Dollar Gains Momentum, PMO BUY Signal Triggered

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Yesterday's breakout on UUP was impressive and although the Dollar pulled back slightly today, it didn't matter to the Price Momentum Oscillator (PMO) as it crossed its signal line and triggered a BUY signal.



While studying the OHLC chart for UUP, I realized if I looked at the closing prices only, there is a clear ascending triangle and yesterday it executed with the breakout above overhead resistance. Today's pullback didn't sacrifice that breakout. If we did a measurement, the minimum upside potential target is $25.70.

Interestingly, when you look at the weekly chart, you can see that $25.75 is one of the next areas of overhead resistance, so that calculation of $25.70 is very close. Notice that the weekly PMO is still rising. It has started to decelerate somewhat, but that makes sense given the trading range of the last 4 or 5 weeks. 

Conclusion: I'm bullish on the Dollar. I would look for a move to challenge overhead resistance at the 2010 top just above $25.75.


Technical Analysis is a windsock, not a crystal ball.

Happy Charting!
- Erin


Helpful DecisionPoint Links:

Erin's PMO Scan

DecisionPoint Shared ChartList and DecisionPoint Chart Gallery

Trend Models

Price Momentum Oscillator (PMO)

On Balance Volume

Swenlin Trading Oscillators (STO-B and STO-V)

ITBM and ITVM

SCTR Ranking


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Erin Swenlin
About the author: is a co-founder of the DecisionPoint.com website along with her father, Carl Swenlin. She launched the DecisionPoint daily blog in 2009 alongside Carl and now serves as a consulting technical analyst and blog contributor at StockCharts.com. Erin is an active Member of the CMT Association. She holds a Master's degree in Information Resource Management from the Air Force Institute of Technology as well as a Bachelor's degree in Mathematics from the University of Southern California. Learn More
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