UNG Update

Our last update for UNG/Nat. Gas was Feb. 4th, UNG Update,  in which I suspected we had just seen a head fake move as the charts since the move below support, looked fairly good...

 This is what I suspect was a head fake/stop run (yellow), note the increase in volume as the support trendline is taken out. Today's move, while a bit parabolic intraday and Thursday being the EIA Nat. Gas inventories, otherwise seems to have good support, not only intraday, but for this entire section of a suspected head fake move allowing accumulation of UNG on the cheap.

This 60 min chart makes the point of this entire section looking like a stop run in order to accumulate UNG on the cheap. A break above the trendline which is now resistance should create stronger upside momentum, but it needs to be a clean break above on a closing basis.

 The intermediate charts like 10 min also show an increased ROC in 3C's positive divergence since the stop-run (red arrow).


And the 5 min chart shows the same with sharper detail so I'd have a hard time believing today's move is a false move , it looks pretty solid to me overall.

On an intraday basis, as I said, it may not be aparent on this chart, but today's move looks a little parabolic, I'm not too concerned with it though at this point. We have near perfect intraday (2m) confirmation.

Don't forget, there is the EIA report Thursday, but I';ll set some price alerts and we'll check in on UNG again , if it can break out above resistance, it should create some nice upside momentum in addition to today's move of nearly +5%.