UNG Follow Up and Trade Set-Up

UNG is down -1.98% today on the 10:30 EIA Nat. Gas Inventories which printed at a build of 82 bcf from the prior of 88 bcf, you can see the reaction right at the report release at 10:30.

Reaction to the 10:30 report.

I had closed a small call position yesterday in front of the EIA report, mainly because of the short duration expiration and the EIA wildcard, but kept the UGAZ (3x long Nat Gas) 7/31 position open, Trade Idea: (Swing Trade +) UNG / UGAZ , which is still at a +9% gain even with today's pullback.

 The large daily chart's base is still very much intact...

And intraday we just saw a large volume spike which may be a short term selling climax/capitulation.

The intraday chart went negative right in to the report and has been in line with price since.

However the larger underlying trend on the 60 min chart which is leading positive is still the highest probability resolution to this base.

As such, I'll keep UGAZ long in place and be looking for a reversal process from today's decline which should make for a nice entry either in to UGAZ long or perhaps another call position, we just need a little time for today's decline to form a small reversal process and put in the positive divergences which are high probability based on the 60 min chart's strength.

If you are interested, I'd put this one on the watchlist. I still expect UNG to move to the $25+ area off this base.