UNG and the EIA Nat. Gas Report

The EIA report came out at 10:30 this morning...

Released On 7/26/2012 10:30:00 AM For wk7/20, 2012

Prior Actual Weekly Change 28 bcf 26 bcf

The actual was 26 bcf with consensus expectations of an injection of 30 bcf, this would seem somewhat bullish to me, but here's how UNG reacted.

 Today' 1 min chart saw a decline after the EIA report, however the 1 min 3C quickly moved back up to where it was before the report even though price is still lower.

Some of you are trading UNG on the short side for a pullback, I personally look at UNG as a longer term trend play and bullish at that, for me, that means I only want to buy weakness, I don't personally want to trade it short. Remember a little over a month ago there was a EIA report that sent UNG up 14% in 1 day, I can't remember any EIA reports, NAT GAS or petroleum that saw that kind of move. While I think the nimble trader can trade a pullback move, I'd rather trade in the direction of the greatest probabilities.

 UNG pulling back a bit, but still above the base's resistance level. There's is overhead resistance in UNG, but we are in the area of where a stage 2 mark up event could start.

 The 5 min trend in 3C shows a pullback, but there's also a decent positive today, that may just be some noise, but I prefer not to take the chance.

 The same is seen on the 15 min chart, but to a smaller extent.

This is the 60 min chart in an overall leading positive divergence and this is why I feel the greatest probabilities are to the upside.