Monday, September 19, 2016

Natural Gas (UNG) Breakout

I've followed Natural Gas ETF UNG closely for a long time because if you can get it right, the gains on it are fantastic. Unfortunately, it is fabulously volatile and you can get wiped out very easily. Right now UNG has been making some bullish gains. There's been an ascending support line that was hit twice in August and once more this month which have made up our lower boundaries. Our upper limits have been a resistance line from highs back in July, August and September. Friday, UNG was one of the few equities getting strong bids throughout the day and it convincingly broke out above resistance with a 1.17% gain. In the coming trading sessions we'll be looking for a confirmation of this breakout with another close above the line. The next stop will be around $8.80. Our ultimate target is $13.25 with a stop along the way at around $9.40.