Tuesday, November 27, 2012

UNG Update

This is an answer to an email about UNG...

"I believe it was my last UNG update I noted price was above the resistance area, but I didn't think it was ready to go (move to a stage 2 breakout/mark up) so a pullback to gather some strength makes (made) perfect sense and I don't think it's anything more than that. I'd expect UNG to pick up some draft from the market when it decides to make that move higher. The 10-15 min charts in UNG look good, it is seeing accumulation (on the pullback), but the 1-3 min charts say it will go lower near term which is fine as it should pick up more accumulation which it will need to make a stage 2 breakout."

In essence UNG is another one of our longer term long plays that we like and have been in for a while. I don't see any threat to UNG right here or now, I see it doing exactly what I'd expect it to do. When it looks like it' nearly done with the pullback I'll update again in case any one wants to add or initiate a new long position. I absolutely prefer equities rather than options as UNG is still in a volatile base.



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