UNG Update

UNG is one of the very few long positions I like, but I like this on a long term basis, I added some as a core long position and I rarely look at it; I just kind of put it away and will wait for it to do its thing.

Here's the update, everything looks to be going fine, UNG's next step is a volume spike and stage 2 mark up; that's where UNG will trend and make for a really nice position.

 5 day UNG chart, the change in character that got us interested is quite obvious,

 UNG with an ascending triangle (bullish) base with a breakout, but stage 2 wasn't achieved.

 UNG  with a distribution day, the candlestick makes it clear along with the high volume, we had to expect a pullback from a day like that.

 The X-over screen to prevent false crossovers gave a long signal, also the first pullback is almost always to the yellow 10 bar moving average, the second to the blue 22 bar moving average.

On the pullback, obvious support was in place, note the break of obvious support which created some supply, this can be easily accumulated, but was it?

 This 2 min chart suggests it was

 The move in the 1 min chart is confirmed by 3C.

 The hourly chart building the base, also shows a positive divergence at the break below support shown above.

 The 30 min chart shows the same.

 As does the 15 min chart, that's pretty good confirmation and what we'd expect to see on such a move once we understand why such moves exist and once we understand the long term bias of the stock.

Finally the 3 min chart confirms.

Now we look for a break back above the base's resistance and wait for stage 2, that's where the easy money is made in a trending stock.