Is Near-Term Top in Place for UNG?

The correctly bearish reaction to a greater-than-expected build in natural gas inventories (+40 vs. +30 expected) has triggered a serious liquidation of long positions so far today.

Let's notice that the weakness has sliced beneath the Feb-May support line at 4.14, and is pressing towards a test of the April 26 prior pullback-pivot low.

If violated and sustained, this will "lock-in" a near-term double-top formation at roughly 4.43 and 4.44.

Should such a break of 4.06 emerge, my downside-target zone will be 3.86-3.83, thereafter, where we will be looking to enter a new, long model portfolio position in the United States Natural Gas (UNG) at 21.25-20.80.

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