Following a brief spike from the 10:30 inventory report, /NG (natural gas futures) continues to backtest the downtrend line off the December 3rd reaction high while holding just above the 2.243 support level. A break above the minor downtrend line/price channel would likely be the catalyst for a rally up to the 2.46 resistance/target while a solid break & 60-minute close below 2.24 would likely trigger more downside.
NG 60m Dec 19th
Any long position taken yesterday or here above support might consider a tight stop below today’s low. The price target* for UGAZ remains 12.45 with the most recent 60-minute chart of UGAZ available by clicking on the UGAZ symbol tag below this post, which will load all previous home page posts with analysis on UGAZ.
*As this is an unofficial trade, the price targets for /NG & UGAZ are “unadjusted price targets” meaning the actual resistance level where a reaction is likely. It is best to close a long position slightly below the actual resistance level one is targeting to reduce the chances of missing a fill, should the security reverse just shy of resistance.