UNG Update

Yesterday I posted the opening of a UNG Call position (Aug. 18th) and warned that today the EIA Natural Gas Inventories would be out at 10:30 a.m., but the chart was what I was interested in, not the inventories so whatever they were, I didn't much care (although a more helpful number would be appreciated).

The second post yesterday after the one above showed the UNG charts and what I liked.

In this post, after the first chart I wrote, 

"UNG 1 m trend, a nice flat range, a move below the range on continued accumulation would be a nice entry as well, perhaps for any who are interested but want to wait for the EIA inventories tomorrow, this may be a good strategy for you."

That appears to be what's happening.

Here's the 10:30 EIA Natural Gas Report...

As you can see the injection was 59bcf on expectations of 56bcf (ironically I just watched Promised land about Nat. Gas last night).

In any case, the report was a disappointment and sent UNG below the range I mentioned yesterday in the second post which is just above, the charts still look good.

This is the 1 min trend, in the white box is the range I was talking about yesterday and the yellow arrow represents the area in which I said yesterday,  "this may be a good strategy for you." 

 This is the 2 min chart since the report came out, but a closer look intraday is more appropriate.

Since the report came out at 10:30 the initial reaction was to take UNG lower, but it stabilized and the 2 min divergence which is the new data since the 10:30 report looks very strong.

If you are interested in UNG and want an update of where things stand later, feel free to email me, the UNG calls will stay open for now.