Mike's Mid Day Minute is available to members on Monday, Wednesday & Friday evenings, with one article per week available to non-members. Members please login and see "Mike's Mid Day Minute" in the navigation menu towards the top of the page.

Warning Signal for Natural Gas ETF

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.

  • 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!