UNG Follow Up

This is the P/L I was trying to protect in UNG...

UNG filled at $27.24 so the P/L of +30.31% is about right, not bad for a stage 1 base with no leverage.

 This is the weekly chart and when we noticed a change in character and started following UNG, note the increased volume during 2012 and then again most recently as UNG looks like it's finally ready to move to stage 2 mark up or trend.

 The daily chart base area and recent breakout, however there's resistance in the area.

Here's the resistance, 3 attempts and volume is very high for the region which is indicative of churning when no additional gains are made. To the right there's a textbook bearish Shooting Star on increased volume which acts as a downside reversal signal, the increased volume just about doubles the probabilities of the candle being successful in it's reversal bias; since we have only seen small bodied stars.

 The 2 hour chart isn't in bad shape, but I would never look for a pullback, even a strong one on a chart this strong or long (2 hour), however there are some recent signs.

At 30 minutes it becomes more clear, especially the resistance of the entire zone.

 The 15 min chart is where I'd look for pullbacks and this is exceptionally clear in the negative leading divegrence, especially on the last run to try to break resistance.

Intraday the 2 min chart is enough of a timing signal for me to take action, but as I mentioned, it may not be the best intraday exit, but I'm fine with that as the probabilities are heavily stacked on favor of a pullback, I'm not going to risk gains for an extra percent or so.

This is why I said it may not be the best intraday exit, the 1 min chart was positive in to the close yesterday giving us this gap up which is in line, but this is not enough for me to stay in the position any longer.

I will look for a pullback to re-enter a new core long UNG position as I believe in this as a primary bull market asset over the long haul.