MIKE PAULENOFF'S ETF TRADING DIARY
Yes, the US Natural Gas ETF (AMEX: UNG) is a roaring bull move off of its 2007 Double Bottom in the low 33 area. Yes, the upmove off of the base area (45.00-34.00) has been powerful to say the least, but it also has fulfilled its measured target zone in the vicinity of 55.00. This does NOT mean that the UNG cannot or will not continue higher; however, when coupled with the glaring daily (and weekly) RSI negative momentum divergences, the fulfilled upside potential of the UNG pattern takes on more interesting dimensions. Let's put it this way: I may well be stopped out of the UNG on another surge, but the overall technical conditions right now make the price structure extremely vulnerable to a "mini-implosion" that chould press prices to the 52.00-50.00 area very quickly.
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