EIA NAT GAS Report

Released On 5/17/2012 10:30:00 AM For wk5/11, 2012

Prior Actual Weekly Change 30 bcf 61 bcf

Consensus on the build was 60 so there was a bigger build than expected, sending UNG lower, this is exactly why we don't chase stocks and UNG's 5+% gain.

 Here's the reaction to the EIA report.

 I'm hoping to see a pullback between the 10 and 22 day.

If you look at the UNG/ Nat Gas trend the way I do, as a secular bull, then you may want to use the wider trend Channel that has held the entire downtrend and only stopped out at the small red arrow. The difference in the stop is only a buck at this point at $16, but the Trend channel in either timeframe will continue moving p to lock in gains, the 2 day will give UNG room for larger consolidations while the 1 day version will give you a tighter stop, depending on how you view the trade.