Monday, January 11, 2016

Natural Gas (UNG): Sell signal in place, gas is still being let out of the balloon

I think Natural Gas is just putting in a second wave of a retracement before continuing down. One day it will return to $6 but for now it's headed towards $2. The recent euphoric rise has been a little too-good-to-be-true, and of course any long term rise can't first begin without a few corrections along the way. Please pay close attention to the RSI(5) which has generated a short term sell signal. The ascending bearish wedge continues to hold nicely. I foresee any fall from this wedge heading to the gap on UNG at $8.00 to $7.75.