UNG Update

UNG has been a trade we have been following for some time because it has enormous potential, still it takes some time to set up a proper base to rally from to meet that potential.

 UNG's bullish descending wedge first turned me on to the trade as well as fundamentals of NAT GAS. Typically with these patterns, we see an extended sideways consolidation/base after coming out of the wedge, how long does UNG have to go? It's still basing in my opinion.

 The 1 day 3C positive leading divergence showed us UNG as a long term candidate with good potential, especially as it started to base and went in to a leading positive divergence in the white box.

 The 30 min chart is very strong leading right now in the lateral basing zone.

 The more detailed shorter term charts don't have the same long term impact, but tell us a little more about the base, here you can see when prices went to high, they were knocked down back to the accumulation level.

 The 5 min chart showed a leading positive divergence several days ago and UNG headed higher, right now it is trading in line with no current short term negative bias, just confirming price action.

The 1 min chart though does show some negative action today. There's a bit of a gain in the trade today, I would consider at least having a stop/trailing stop as I don't think the base is finished and I don't know that it will buck the overall energy trend.

This is a longer term play everyone should have on their watchlists.