UNG has had a massive fall from 64 almost 1 year ago and has left a multitude of gaps all the way down. The most notable are the group from 27 to 32. Once it took out 33.40 there was nothing to stop it.
UNG appears to have found a bottom (notice the gas prices at your home have not decreased all that much - Fing crooks). It also has broken out of the large falling wedge or massive channel off the 64 top. While range bound between 17.50 and 12.50 (a very nice trading range) it appears to be wedging at this time. That wedge looks like the consolidation will continue and trading range will narrow thru mid July at least. The monthly and weekly indicators are trying to push up. The daily and 60m indicators are trying to flatten out showing consolidation.
The warmer winter and lack of demand did nothing to help UNG this past winter. I think it has just hit rock bottom. Maybe there is a supply problem. I just don't understand how something that should be priced around $33 is trading down here and staying down here. I guess the simple answer is that it is out of favor with the commodity manipulators.
Check back in mid July to see where this one may go. I see nothing happening till then. IF it makes a double bottom, look for UNG to form a descending triangle with a triple bottom for the reversal pattern (yes, they can be reversal patterns).
Beautiful day and throw in the fact the white house confirms we hit 10% by AUG....priceless! My shorts did awesome.
ReplyDelete-Michael
So did mine. Added Friday and took some off today but still very short. I don't like getting greedy.
ReplyDeletethanks for the ung post
ReplyDeletelooks like it held at the lower trendline of the wedge
seems like we should get a bounce tomorrow
nice article but the volume is dropping on fall after the big rise. therefore less people are selling. I'm bullish on UNG
ReplyDelete