UNG Update

One of the things I really like about UNG is that it is trading outside of its Industry group correlation. The market overall is the strongest gravitational force on the direction of any stock on any given day, followed by the Industry group, in UNG's case, XLE/Energy. UNG's ability to trade outside of the Industry groups correlation is a sign of strength.

 UNG pulled back to the 10-day (yellow) moving average as expected, the blue 22 day is the next area of resistance. UNG is trading up +5.73% thus far, bucking both the market and XLE (-1.23%). A breakout through the 22 day will be very bullish.

 Keep an eye on volume today as well, if UNG doesn't breakout today it won't be as important, but if it does, we will likely see a surge in volume as UNG possibly moves to stage 2 mark up. All of the talk least week in ETF performance included UNG as a top relative performer so it is attracting some interest, validating our long seen, long term positive divergences.

 This is what market / stock confirmation looks like, something that has been missing from the broad market.

 Note UNG's performance relative to the Energy Sector (red)

It also appears the EUR is not quite done on the upside, as I mentioned in today's first post, a break of an important support level (unlike days of old) now sees price linger in the area of the break, usually with several shakeout attempts before continuing its trend.