" today did create a gap, which may or may not be filled, but it looks like UNG has found the pullback bottom we have been anticipating."
In the linked post above from Friday you can see the 3C charts for Natural Gas futures, which look pretty good, a lot like they are confirming that UNG has found it's footing in the area, however "V" shaped reversal s like Friday's to the upside are not that common as a reversal is more a process (U or "W" shaped rather than an event "V" shaped, so the pullback to crate a wider footprint and fill the gap , which the market has been compulsive about the last few years, is not that surprising. The NG charts with positive divergences are still in effect in the more important timeframes from 7 min, 15 min, 30 min and 60 min, while the 5 min chart is in line with price and the 1 min chart which would be the first place to see a positive divegrence on the pullback today, is showing the start of that divegrence which would suggest that the pullback is being accumulated and as such is a constructive pullback and one of my favorite entries or add to long positions as the pullback itself verifies the accumulation, for example in the intraday 1 min NG futures chart...
You can see the "in line" status of 3C, confirming the short term trend or pullback filling the gap from Friday's gap up as I suspected it might and we are now seeing a positive divergence develop as we entered the regular hours (cash market).
The 3C chart of UNG is showing very similar behavior. For long entries, we want to see the pullback accumulated and show stronger and stronger intraday positive divergences indicating such, this is why these are some of my favorite trades as they reduce the entry price, reduce risk and have to prove themselves as being a true pullback that's constructive or being accumulated before any entry is made, it's letting the trade come to you.
So, so far so good for this gap fill and widening of the lows/base put in last week which I much prefer to see as a "V" shaped base is like trying to build on a "V" shaped foundation, things get more unstable the higher you move, as opposed to a wider base/foot print that can support a stronger move higher- we've already seen 1 "V" shaped low lead to a breakout that we knew would pullback as it has.
The stronger 7-60 min charts already told us the probability of a pullback being constructive and accumulated was high before the pullback even started.
As for the intraday charts of UNG or (UGAZ-3x long Natural Gas)...
Just like oour Concept of "W" or double bottoms, which are fractal concepts, the break below the first bottom's low rather than the older technical analysis dogma of a "W" bottom in which the second bottom falls just short of the first. is much more common as TA is used against traders, shaking out any potential "W" bottom longs as they see their stops hit, so although a gap fill was expected, this concept holds across all timeframes and is not surprising to see, however that makes the strengthening positive divegrence even more important as it tells us this is a constructive pullback that is being accumulated and worth buying as well as gives us an idea of when and where- the lateral trade or diminishing ROC of price is important to this concept so I'd consider adding ROC to price as we have talked about so many times before with UNG in particular as it tends to respond well to price ROC divergences.
The stronger 3 min chart which was clearly positive at last week's lows is still in leading positive position, but we want to see the 1 min chart migrate out and turn this 3 min more positive with an uptick in 3C to a higher high above the small red arrow.
The fact these two charts are in leading positive position tells us, along with the Natural Gas futures 7-60 min charts being positive, that the probabilities are high that this resolves positively and turns in to an excellent entry/add to area.
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