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By Mike Paulenoff, www.MPTrader.com
Yesterday's up-gap spike to new highs above 55.00 in the U.S. Natural Gas Fund ETF (AMEX: UNG) followed by a close near the low of the session, which then was followed by a gap down opening this morning and a plunge to the 52.00 area, not only satisfied a multi-month upside swing target off of the Sept-Dec '07 base formation but it also left behind (for now) an exhaustion Island Reversal at the very top of the advance. Usually, such an exhaustion signal identifies a significant price peak and a near-term reversal in trend direction. Such is the case in the UNG, which now points lower towards 50.00 next, on the way to 48.00 thereafter.
Mike Paulenoff is author of www.MPTrader.com, a real-time diary of his technical analysis & trade alerts on ETFs for precious metals, energy, currencies, and an array of equity indices and sectors, including international markets, plus key ETF component stocks in sectors like technology, mining, and banking. Sign up for a Free 15-day Trial!
