UNG: Is Natural Gas Set to Explode?
Proceed with caution; there may yet be a short-term pullback.
Editor's Note: The following was posted in real time on our premium Buzz & Banter(click for a free trial). It's being shared here for the benefit of the Minyanville community.
After spotting relative-high in Bollinger Bands -- and a high-volume reversal on April 30 -- and after tracking its journey through many days of additional strength on the Buzz and Banter, UNG -- the natural gas ETF -- is still a star on my radar.
The chart is still looking very good, though we might see a short-term pullback. As long as this pullback is accompanied by low volume, I believe it will prove to be a second-chance buying opportunity in this beaten-down name.
Click here to enlarge.
Here are some technical levels that UNG might gravitate toward: In the second chart, we see the levels to watch, in case of a mild pullback.
- The first level remains the top of the long channel UNG has broken out of, right around $15.4
- $14.25 (confluence of 20-dma and 10-dma) will offer the next support.
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