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Time to take another peak at the U.S. Natural Gas Fund ETF (NYSE: UNG), which is up nearly 40% in the past several sessions (see, every dog has its day!)....
Let’s notice that this morning’s new recovery high in the UNG at 17.47 was accompanied by a glaring negative RSI divergence, which is a major warning signal to me that the upmove from the late-April double bottom at 12.69 likely ended at 17.47 (+38%). My near-term pattern work also warns me that the form of the Apr-May upleg exhibits the look of completion – ahead of a corrective period that should press prices into the 15.75/25 area and possibly to the 14.50 area prior to my expectation of another powerful upleg that should propel prices above 18 into the 20.00-21.00 area thereafter. I will be looking for entry into the long side under 16.00 in the upcoming hours/days.
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!
