Natural Gas in Completed Bottoming Formation
02/11/2009 11:08 am EST
The daily chart of the US Natural Gas Fund ETF (UNG) argues strongly that the price structure has completed a rounded, two-three week bottoming formation that should propel prices towards a confrontation with the six-month resistance line(s) at $21.20-$22.00 in the upcoming hours/days.
The UNG needs to hurdle and sustain above $22.40 to trigger more meaningful buy signals that will indicate that an intermediate-term low has been established, but traders looking for a bottom may have found it.
By Mike Paulenoff of MPTrader.com