UNG Update

After last Thursday's Breakout move in UNG, my preference as always is not to chase price, but let it come to you on your terms in which you can confirm the trade's strength, get a better entry and lower risk, it just requires patience and occasionally passing on some trades you are interested in.

I suppose it's little wonder UNG/UGAZ longs want to pullback after the breakout move and Wall St. will want to shakeout any confirmation longs who bought on the breakout as their stops will be just below the top of the range.

 I could probably get the gist of this post out with the first two charts. The longer term 4 hour Natural Gas futures, the highest probability is leading positive...

The 15 min natural gas 3C chart has a negative divegrence after last week's run, looks a lot like a pullback so we'll be watching for accumulation in to that pullback which will make a nice place for new longs or add to positions to be considered at lower prices and lower risk.

 This is a 2-day chart of UNG, it shows the loss of momentum which should lead to a pullback after the initial breakout.

 The Daily X-Over Screen just went long. Typically the first pullback after a new signal is to the 10-bar yellow price moving average.

This is the 60 min version, in this case we are likely to see a small swing to the downside as the pullback is already at the 22-bar.

The Daily Trend Channel still looks like a reasonable stop , just at $21 right now and moving up, I always use any stop signals on the close.

 And UNG longer term 60 min leading positive like NG 4 hour is the highest probability resolution, UP.

The shorter term 15 min shows the positive accumulation/base and the current pullback signal.

It looks like many of you who have been writing about UNG will get that second chance you were hoping for.