Natural Gas ETF Bull Run to take a Breather

By: Mike_Paulenoff

The enclosed 4-hour chart of the U.S. Natural Gas Fund ETF (AMEX: UNG) shows yesterday's high as 38.45, but I show a high at 38.05 on my other systems. In any case, although the UNG was very overbought and in need of a pullback, the fact that today's "rest" is so shallow is a very bullish technical sign. In a perfect technical world, I would look for additional weakness that presses the UNG to 36.50 prior to the start of a new and very powerful upside extension (towards 40-41). In an imperfect world, however, we might now see the UNG beneath 37.20/00 prior to the resumption of strength. For the time being, I will wait on the sidelines for a while longer.

Sign up for a free 15-day trial to Mike's ETF Trading Diary today.

By Mike Paulenoff

Mike Paulenoff is author of the MPTrader.com (www.mptrader.com) , a real-time diary of Mike Paulenoff's trading ideas and technical chart analysis of Exchange Traded Funds (ETFs) that track equity indices, metals, energy commodities, currencies, Treasuries, and other markets. It is for traders with a 3-30 day time horizon, who use the service for guidance on both specific trades as well as general market direction

© 2002-2007 MPTrader.com, an AdviceTrade publication.  All rights reserved. Any publication, distribution, retransmission or reproduction of information or data contained on this Web site without written consent from MPTrader is prohibited. See our disclaimer.

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.