There was a ton of noice for natural gas this week, which resulted in me exiting my positions and sitting on the sidelines. Natural gas has made two huge moves in the past two trading days to bring gas prices to monthly highs. The buy technicals indicators showed last week were confirmed. However, as I mentioned in last week's post, this rally will be short-lived since the main trend is DOWN. Do not be fooled by 10% up-moves, noice or randomness in these markets. FOLLOWING THE MAIN TREND MAKES MONEY, I GUARANTEE IT. You will get hurt in HNU/UNG if you do not enter at optimal levels, especially if counter-trading. .We are now approaching key resistance levels at $4.45-$4.55.. if it can break that, you will see natural gas continue it's uptrend likely to $4.90 (resistance 1) and then $5.20 (resistance 2).. If your a bull, put stops maybe at $4.20?
$NATGAS:
Short Term Views:
- I have a bullish bias but I will not counter-trade to catch the bullish upside which will either go to $4.45-$4.50 or $4.90-$5.00, I will patiently wait for $4.45 to short and set a stop at $4.56. If that breaks my next short will be 10% higher at $4.95.
Long Term Views:
- The main trend is still down.
Do not discount that when you are trading HNU/UNG/HND/GAS.
Short-Term Natural Gas Chart:
-Target $4.50
-Pattern: Bullish Symmetrical Triangle Breakout
-Buy Signals point up (MACD)
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UNG Technical Analysis
(Please click on the chart to enlarge it.)
Short Term: Bullish (Buy on the Dips) --> Target $8.20 (1-2 Weeks)
Long-Term: Very Bearish --> Eventual Target is $5.50 [4-months time-frame]
