UNG Follow Up

Yesterday I put out an update on UNG which is trading in a base/range, but looking very bullish. Some events have transpired today that warrant a follow up.

 First recall that UNG looks similar to URRE in the price pattern, a bullish descending wedge. Except URRE did not build a base after exiting the wedge, it did start a move and is consolidating now (you may want to take a look at it on the pullback). Today we see a nice move in UNG off yesterday's pullback to the lower end of the base, I would normally consider this just part of the hop in building a base, but UNG warrants closer attention because of the very large volume today. Technically it has NOT broken out of the base yet, but may do so shortly.

 The 1 min chart does show accumulation on yesterday's lows as you would expect for a base.

 The 2 min chart looks even more bullish in a strong leading positive divergence.

 The 5 min chart, may not have caught up yet, but is some cause for patience as accumulation is evident , but the in line status is fading a bit on the recent high.

 A longer view of the 5 min chart shows that it is in fact not in line with price yet, this is what causes some caution in my view.

 The 15 min hart shows the same problem. Remember, in this case we are looking at local strength, it will start on the shorter charts and bleed to the longer charts so improvement in the 5 min should lead to improvement in the 15 min. The longer term charts like 30/60 represent the entire base, rather then local strength.

 And as you can see both the 30 above and 60 below are very strong on this base with leading positive divergences. Yesterday we saw the same in the 1 day chart, but I have not posted that today as the 1 day charts are being effected and showing the wrong price from the exchange data feed, however, yesterday's post shows the strength.

Ultimately this is the base more or less with a few upside and downside head fake moves. It depends on your risk tolerance as to whether you want to buy in the base. I would say a strong breakout above $9.20 on volume like today's would be a high probability trade.