200 day is around $2.42. It was tested today . Usually 200 day is strong area of resistance or support. The stock is very over bought. Simply based on technical indicators the stock should not breach or stay over 200 sma. But other factors are in play. The stock is working at 200 day it has to breach it & day above that for a few days to make a base there. The stock would have been in a stronger position to make a run if it was not overbought. UUU is in area of resistance. All U stocks are over bought and well off their 52 week lows that they created during tax loss selling. This morning UUU tried to breach 200 sma but was forced down by Anonymous & few shares from Goldman. As long this stock stays close to the striking range of 200 sma it will eventually overcome the resistance. The other option would be small pull back & the then spike.
Now after Fiscal cliff some investors who were on sidelines would be willing to take some risk. Plus you have a short sellers whose losses are piling up. 10 million plus shares shorted at $1.86 would be hurting now. We have to see if this short seller is going to commit more shares to put pressure on the stock, wait & see or cover. Any way you see this short position it is good for the longs. The huge gap up in futures was partially due to short covering.