Ruble ETF Could Be Headed For Trouble

The Russian Ruble doesn't get the same type of press as the U.S. Dollar, the Euro or the Japanese Yen and unbeknownst to many investors, there is an ETF to play the Ruble with: The CurrencyShares Russian Ruble Trust (NYSE: XRU).

XRU is a thinly traded ETF that isn't optionable. Fortunately, it is shortable and that is a good thing because as the attached chart shows, a head and shoulders pattern has clearly formed.

It appears as though XRU is consolidating in the mid-33 area and if support at $33 doesn't hold, XRU could drop another couple of points to $31, another important support level.

Any weakness in oil prices may present investors with a valid short entry in XRU.