Thursday, October 06, 2016

Natural Gas (UNG) On A Run (To At Least $9.25 We Hope)

Winter is upon us, the President has spoken highly of it recently, what more do you need? We identified the support zone around $8.20 to $8.30 some time ago but we were concerned about a breakdown and chose to watch what would happen instead. What has happened with Natural Gas ETF (UNG) was a firm rejection and four strong up days. There is a overhead resistance now at $8.80 and again at about $9.20 but I am expecting a resumption of UNG's move upwards. Despite four strong 'up' days we haven't had any convincing cross-overs on the indicators yet which suggests to me that some pressure beneath may building up while they change direction. The EMA's are appropriately aligned and the momentum indicators are all positive. After tomorrow's job report and looking ahead to the new week Natural Gas deserves a close examination.