Natural Gas in Bullish Rest

Natural Gas in Bullish Rest
By Mike Paulenoff, www.MPTrader.com

The enclosed 4-hour chart of the U.S. Natural Gas Fund ETF (AMEX: UNG) shows yesterday's high as 38.45, but I show a high at 38.05 on my other systems. In any case, although the UNG was very overbought and in need of a pullback, the fact that today's "rest" is so shallow is a very bullish technical sign. In a perfect technical world, I would look for additional weakness that presses the UNG to 36.50 prior to the start of a new and very powerful upside extension (towards 40-41). In an imperfect world, however, we might now see the UNG beneath 37.20/00 prior to the resumption of strength. For the time being, I will wait on the sidelines for a while longer.


  Matched
x
  • Action-Oriented Trade Set-Ups in Stocks & ETFs
  • Macro Analysis of the Broader Markets
  • Detailed Technical Guidance for each Trading Idea
  • Live Interaction w/ Mike & Our Member Community
  • And Much, Much More!
Join Now! - Special Offer!
Veteran Wall Street analyst and financial author, Mike provides detailed and timely analysis and trade set-ups on a range of markets. Read more...

Have Mike's “Out Front” morning analysis delivered FREE to your email inbox twice weekly!