UNG Opportunity

For long term members, you know UNG (Natural Gas) is one of my favorite long term secular bull market positions and it seems we are in the right place at the right time to start a position or add to one or just hold.

 We first noticed a change in character before UNG changed it's downtrend, you can see it here on my favorite chart to start analysis with, a 5 day- look at volume. Since then, a lot of very interesting things have happened including legislation that makes Natural Gas and Nuclear the only two viable energy sources for any new US power stations.


 We identified the base in UNG through 3C positive divergences and many members already have a +25-30% gain and we haven't even started stage 2 mark up yet. We also identified this last failed breakout attempt as a head fake move and that gave members the chance to sell UNG high and be able to buy it back low, but it also told us that the pullback was likely going to be used to accumulate a big enough position so the next breakout will take us to stage 2 when the stock moves in to an uptrend.

 Here's the 60 min 3C chart clearly showing a leading negative divergence at the head fake breakout in yellow, but on the pullback as we predicted, we have a huge leading positive divergence.

 The 15 min chart is also leading positive and the reversal area seems to be clear, but we may also have a short term pullback allowing us to enter UNG at a lower cost and less risk.

 The 2 min chart (intraday) seems to agree, so w'll be looking for a pullback and short term accumulation to tell us when to look at buying or adding to existing UNG long positions.

I'm thinking the 60 min Trend Channel will hold the pullback so you might want to set some price alerts for the $19+ area. I'll keep an eye on it and let you know when the intraday charts line up with the long term charts, there we should find a good bargain and high probabilities for a trade that could last years.