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UNG, Natural Gas, Breaks Above Resistance

After two reactions off the recent T2/final target level, UNG (US Natural Gas Fund ETF) has taken that resistance level out. Should this breakout stick, UNG is likely headed towards the 7.18 level & quite likely beyond. I'm still considering adding back UNG as another official Long Swing Trade trade idea as well as a Long-term Trade idea, as the longer-term charts remain constructive. However, I'd like to study the charts a bit more before making that decision & just wanted to highlight this breakout for those who are currently trading or following UNG or any other natural gas proxy.

UNG 60-minute April 4th

UNG 60-minute April 4th

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Apr 4, 2016 10:06am|Categories: Gold & Commodities|Tags: , |2 Comments

2 Comments

  1. GetItRiight April 4, 2016 3:33 pm at 3:33 pm

    Randy, with this breakout seemingly failing, would you go short on natural gas?

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  2. rsotc April 4, 2016 3:43 pm at 3:43 pm

    No. The longer-term & intermediate-term charts are just too indicative that a bottom may be in or near in natural gas. Plus, I just don’t see a very objective entry with well-defined targets & stop levels on the intraday charts for UNG so I’d rather continue to remain on the sidelines with this one for now while waiting for the next clean setup to develop.

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