Wednesday, March 23, 2016

Natural Gas: Excellent Short Opportunity But A Breakout May Developing

Just like clockwork Natural Gas (UNG) came right up against resistance at around $6.80 which represented a great opportunity to go short. What's beginning to form however is a bullish declining wedge. Natural gas has been beaten a lot over the last few years but it now finds itself priced more cheaply than coal!
On the weekly chart the bullish declining wedge is still seen but with a 'buy' signal on the RSI(5). If support is found on the line for the RSI(5) signal then a turn-around for natural gas going into May might be seen.