The video is posted below. The SDS hourly chart below posts various entry points for our the falling wedge and double bottom patterns setting up here. However, entering a the 6th point possess the most risk because we only expect prices to test $58, which is the neckline for the larger inverse head and shoulders pattern that has been setting up since May.
I took another swing position in SDS today, as the falling wedge broke out on the hourly chart. A descending triangle appeared on the 15 minute chart later in the afternoon as the MACD flashed a sell signal. I sold half the positon for a quick profit, with a tight stop underneath the last minor low. I might raise that to the break even level before the market opens in the morning. I will buy my shares back if a higher low appears, which would complete a small inverse head & shoulders pattern over the last four sessions.
So watch for a pivot reversal to form a right shoulder. The pivot point of the chart pattern is at $56.11, and it measures to the low $58 area. That would take prices back up to resistance, where the first lower high was made on June 25. Study the charts posted below of SDS. To enlarge the chart, just click it. The video is posted below that.
