Upside Reversal in Natural Gas ETF

The morning’s low in the U.S. Natural Gas Fund ETF (NYSE: UNG) was followed by an hourly upside reversal in the form of a big “green” candle that spanned 11.33 to 11.74. That upmove represents the largest hourly concentration of buying since August 13 and is a conspicuous entry on the near-term chart picture. Let’s also notice that since the big up-candle, the UNG has held its gains above 11.60. The ability of the UNG to climb and hold above 11.75 into the closing bell will indicate that a significant near-term low was established this morning at 11.29. The initial upside target zone is 12.00-12.10, which if hurdled should trigger upside continuation to 12.50.