Monday, December 16, 2013

UNG / DGAZ Update

Looking at the charts for both, there are pretty impressive intraday divergences that imply a high probability that today's gap is filled, beyond intraday there are charts with high probabilities suggesting a move lower. I don't see this move as connected too closely with the broad market, I think it is its own move, but these two charts sum it up...
 UNG 2 min positive intraday looks like today's gap will be filled.

The 5 min DGAZ looks like after that there's more downside room for UNG, all of the charts confirm in numerous timeframes, I think probabilities are high of a gap fill and then a move lower. 

I was considering whether I should sell DGAZ and re-open it tomorrow or another day, I decided not to over-trade this position and just stay with probabilities, but I wanted to let you know.

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