UNG-NAT. GAS

I just read a report on natural gas which a member sent over. I'm not going to go into the details, but the gist was that Nat. Gas is trading far under value compared to oil and there's been a recent trend a declining number of rigs that extract Nat Gas. So after having been burnt on a trade a year or so ago, I took another look and found a little surprise.

 Here's the typical trading range I like to see when looking for divergences, these trading ranges are fertile ground for accumulation/distribution. Furthermore, from a bullish perspective, the head fake is always an added bonus, which you can see on 5/18 with the increase in sell side volume. The recent gap up came on heavier green volume, which is what we want to see in a range that i nearing a breakout. Finally we want to see a breakout on strong volume.

And the 15 min 3C chart, pretty much what I hoped to see. It appears Nat. Gas may be getting ready for a little run. I'm going to try to take a look at some individual stocks in the sector as well.