EIA Nat Gas Report/UNG

This isn't the typical EIA nat gas report with consensus, etc so it's hard to make much of it, but the movement in price in UNG does make some sense.

Released On 11/1/2012 10:30:00 AM For wk10/26, 2012 Prior Actual Weekly Change 67 bcf 65 bcf

Highlights Working gas in storage was 3,908 Bcf as of Friday, October 26, 2012. This represents a net increase of 65 Bcf from the previous week. Stocks were 136 Bcf higher than last year at this time and 259 Bcf above the 5-year average of 3,649 Bcf. So I'm not sure what consensus was or how the market views this morning's report, but there are a few things that we see often happening in UNG that are pretty typical. As for the position in UNG, it's a longer term long position and I intend to keep it open and not let a little volatility shake me out.  This bullish ascending triangle is a bullish consolidation/continuation pattern in the right spot, just as UNG is gathering interest from the market (we've been on this since before it even reversed). The break below the pattern makes technical traders think the pattern failed and they'll place stops there, which makes it easy to take their shares, like I always say, Technical Traders are too predictable.  Here's the reaction this morning to the EIA Nat Gas report, it's been volatile, but that's not surprising.  This is the bullish ascending triangle and the day support was broken on the 25th, this is where longs would put stops and as you notice, there's a positive divergence right there where longs would be providing supply at better prices! The 2 min chart even shows the pattern being set up with the highs seeing a small negative divergence (2 min) nd the leading positive since price broke below. For all these reasons and then a bunch more, I'm still very bullish on UNG and see this area as an add to or an area to iniaitate a new position or partial position.