UNG Update

UNG is likely going to see a pullback which is fine, it's about that time as I'd rather see a healthy pullback than it get too overbought and gappy.

This will likely provide an opportunity for those still building positions or considering UNG as a long term long position. We'll double check the underlying trade in any pullback to make sure everything is as we'd like to see, I don't have any concerns though at this time.

 There's a gap today, there's resistance and gap resistance just overhead and base neckline resistance just above that, that's a lot of resistance areas and it would be nice to see UNG pullback and gather some strength before attempting to break through all of those levels especially after it has already moved through 1 level on the current leg and is 4 days in to this move.

 The 1 min chart is still confirming the trend which is good to see...

 The 2 min chart has been confirming very well, but is showing some signs of a pullback.

Ultimately it already looks like UNG has already made preparations for a move through all of the overhead congestion as the 15 min chart is leading positive between the two same relative price levels, further strengthening is like a coil or spring, it should just give UNG more momentum.

As for timing and catalysts, we still have the EIA Natural Gas report Thursday despite yesterday's holiday, so maybe a 2 day pullback or so in to the report? It wasn't that long ago that UNG surged 14% in a single day on an EIA report.