UNG/UGAZ Appear to have found their bottom

This looks like a pretty massive stop run in UNG (natural gas). Wednesday I posted UNG long Looking Interesting Here. From there it put in 1 more day, taking out stops from its last bottom at 10/27.

I have chosen to hold UGAZ (long-3x long Nat. Gas / UNG)because I believe in this as a longer term secular position, not so much a trading position although it can be traded, I think the real potential is its longer term trend.

 Here's the range UNG has been popping above and pulling back below to gain strength for breakout attempts, although I'm not convinced these are failed breakouts as much as they may be a an accumulation opportunity, perhaps away from US oil producers and toward natural gas.

Look at what is happening in oil and specifically US Shale drillers, they are being run out by the Saudis keeping prices low and their foot on US shale drillers neck. This may be why UNG long term has had such an interesting look, perhaps we are looking at a major shift in US energy, much like Brazil with Ethanol (one can only hope). In any case, we are almost exactly at the level in which I said on Wednesday that UNG/UGAZ was looking interesting as a long and it appears the stops have been cleared (yesterday) ...head fake move.

The Natural Gas futures longer /stronger charts remain firm.

 NG 60

NG 30

NG 15.

This looks very much like a purposeful run on stops, in the same area UNG was accumulated last time in October.

Note the massive change in character in volume around the range as well.

UNG 20014 volume

 This is the range area and moves above and below it, the red arrow is the last UNG pullback we called looking for a pullback low to buy or add to UNG positions, but note 3C on this 60 min chart did not move down to confirm the lows, just as last time at the October lows where there was a patch of heavy accumulation, 3C also refused to confirm the lows, showing accumulation at the area.

The shorter term charts are more detailed, but the outcome looks to be the same.

 There's the pullback area we saw in November, the same as above (red arrow) and a large positive divegrence right before and in to the stops area, $18.90-ish-$19.

 The 5 min chart tells the same story.

 As does the 3 min chart.

So far the intraday chart has UNG in line.

If you are long or recently entered UNG, you have a stop level now, just below yesterday's intraday lows. although I'd keep it o a closing basis as 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.