Despite my previous post talking about UNG needing until end of year to get a reversal going, I am seeing enough right now on the daily chart to try going long UNG again at 9.38 with a stop at 8.96 which is just below the super high volume gap up day. It seems like a compelling setup and relatively low risk/reward type setup.
I have noticed a couple of 2B buy setups on the chart and combined with the daily macd histrogram and the super large volume buy day the other day I am willing to bet that UNG has a more important bottom here.
It could still be choppy for a while but this just seems like a good trade here. Almost everything else is overbought out there right now.
The chart is showing a small broadening wedge pattern near the double bottom retest and we may trade up to the top of that range combined with hitting the 50 day moving average before getting some kind of downward consolidation.
The cold weather spell out there seems to be helping support the UNG ETF as well 🙂 .