Thursday, March 18, 2010

Quick Look At UNG

UPDATE - CRUSHED - ouchie. See my first sentence.$3.81 is the 61.8% retracement for /NG. It has entered what I like to call the "retracement zone - the area between the 50 and 62% retracement levels. You UNG lovers may have to wait another month. Not sure where it can get a bid. I guided you to the $4.24 level. Now let's let this thing settle and regroup.

I am not recommending anything before the call. If you do try a long I highly suggest tight stops. You know I do not like the future of NG and where I think the price is going (3.25 to $2.40), but I am anticipating a possible NT oversold pop. I have lowered my target for UNG from $9.50 to the gap at 9.

Be very careful, we have like a billion year supply on NG and many other factors (uh, like a weak economy) do not bode well for the future on NG right now. This is a nasty chart, but I caution it can get worse. If it pops I'll get on board with a pretty tight trailing stop.