UNG / DGAZ UPDATE

Finally, I was very hesitant to let go of the DGAZ long with signals still in place and UNG making such a parabolic move Friday, but on the other hand, that position's draw down got way out of control so I'm glad to see the signals kicking in and DGAZ is up 10-12% today, it may even offer an entry for a new trade (long) on a slight intraday pullback as we don't want to chase a gain like this.

The charts...

 I would have preferred a longer upper wick on Friday's daily candle, but a lot of the churning/volume were in that region where there is exposed wick, not to mention the parabolic move, best viewed on an intraday chart. So far today's candlestick (daily) formation is that of a bearish Harami reversal or as the Japanese call it, "Mother with baby", we call it an inside day.

 DGAZ has the opposite, a bullish Harami or inside day, so I like the looks of that, typically the 3rd day (tomorrow) is the confirmation day and is often a bearish engulfing candle  (for UNG) or a gap up (for DGAZ) those are interchangeable of course.

 This is the distribution in that wick area from Friday I was glad to see.

There was tons of confirmation/migration as you see above on a 2 min chart

And a nasty leading negative on a 3 min chart

DGAZ's 10 min chart (the timeframe that fits the intended trade), held up well, that's why it was so hard to walk away from when there's this huge positive divegrence.

If price pulls back a bit it would make a decent new long in my opinion, as far as an add to, I'd like to, but that would be dollar cost averaging and I try not to do that unless it was part of the risk management before I entered the trade.

 DGAZ needed its short term charts to go positive as the kick start to that 10 min divergence. This is a 3 min from Friday going leading positive and confirming UNG.

This is the stop for this run for UNG, so far the channel held the entire move, even that first area it didn't stop out, right now the stop would be under $23.52, preferably on a closing basis, I think we'll get it and this trade will start to straighten out, thankfully. I'd usually not let a trade get this out of hand, but I also have a very hard time walking away from a solid signal, it seems like weather is changing the next week or so ahead so that should be helpful as well.