UNG Came Back...

Just as we forecasted earlier today, UNG Follow Up,  as UNG gained on the EIA Natural Gas Inventories, it came right back down to where we need it to be to make this in to a high quality long equity trade in either UNG or UGAZ or potentially on a head fake move that is more convincing and confirmed, an excellent call option position entry.

The red trendline is where the basing work needs to be done or better, below the red trendline. I wouldn't feel any immediate need to get in to a new position or add to, it will take some time to build a base and we still need to confirm it, however the longer term probabilities suggest it will be successful so at this point it's more a matter of timing and a little patience as UNG is doing as forecast as is the market despite interruptions to the upside that have now been resolved.