UNG / UGAZ Update

As of our last update Thursday, UNG Follow Up, UNG was expected to pullback and do some backing and filling/gap fill.

This is the chart from that post...

 Expected minimum pullback at the top of the orange range and a full gap fill at the bottom.

So far as of today...

We've made the first target and partially there toward the second. The large, long-legged Doji Star Thursday on volume made for a convincing pullback candlestick on higher volume.

 The daily X-Over screen that recently gave a new buy signal was one of the potential pullback areas at the blue 22-bar moving average which isn't far from a gap fill as well.

I also showed this 15 min chart and said I thought by the time UNG had finished a pullback and reversal process to move back up, this chart would be repaired.

Since...

 We keep seeing small intraday divergences near lows of the day where it seems a position in UNG at lows of the day is being accrued or bought on the pullback. That has already migrated as far as the 5 min chart in 2 days, suggesting the 15 min chart will be repaired and positive by the time UNG is a buy on a pullback which gives you a better entry/add to and lower risk as well as confirming the strength of accumulation in to the pullback, one of my favorite trade entries.

This is the 5 min chart already going positive and migrating out to longer timeframes. I still would be patient and wait for the 15 min chart to go positive, but at this rate in a mere 2 days having the 5 min turn positive already, I don't suspect you'll have to wait too much longer. I would guess that our pullback targets are just about right with a small reversal process (lateral) before the move to the upside resumes, also catching a bear trap as we are back inside the range which should add short squeeze momentum to the reversal. So far so good.