After coming within about $0.30 of getting stopped out this morning on the US Natural Gas ETF (AMEX: UNG), lower-than-expected natural gas inventories reversed price direction, which rocketed the price structure to new highs at 56.42. With today's spike low at 54.67, and yesterday's spike low at 54.42, we know where the stops belong. As for the upside potential from current levels, my overall technical work indicates that the UNG still has more upside ahead, into the 57.00 target zone next -- as long as 54.67/42 support remains intact.

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

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