UNG Update

I'm just going to get to the charts...

 UNG's original base looked like a strong primary uptrend candidate, but since being in a range to the far right, I've held open a DGAZ (short Nat Gas) position expecting some kind of large pullback and on that pullback, it would be a lot easier to determine whether UNG still has what it takes to make a move to a primary upturned.

It seems the Russian sanctions have been effecting UNG, I'm not quite sure what the connection is there in its entirety other than a few guesses.

 30 min UNG in the range mentioned, this made it worthwhile to hold DGAZ even though it has been at deep drawdown, I suspected I'd either get a much better exit or maybe even a gain on the position with this divergence so I had been expecting a move lower in UNG.

However, just like with a H&S top that just breaks the neckline, new shorts pile in and it's not unusual for them to be shaken out with a move back above former support where they place their stops , running them out of the trade before a lower low is made.

 This is where I expected a bounce recently as a nice reversal process took shape just below former support, I expected a move up, hit the BTC stops and a continued move down as the 30 min negative is quite large.

Instead, last week on US sanctions against Russia UNG gapped down and then was hit harder on the Thursday 10:30 EIA nat gas report, then today after more sanctions it gapped down again, but looks as if it found some short term support on today's gap with a slight bullish hammer candlestick and rising volume.

The 10 min chart is positive in the area as well as it was before the gaps below it, I suspect this divergence is still in play.

And the 3 min timing chart is positive in the area.

I'm not a huge fan of playing a bounce here, but I would consider a bounce an excellent shorting opportunity and would set price alerts just above former support/current resistance.