Natural Gas Ready to Pop?
The next move may be up rather than an extension of the previous down trend.
- Over the last two weeks, there been significant support above $18 and significant volume.
- The $20/$20.50 level has been tested multiple times; the more tests it undertakes, the more likely it is to break.
- Both the 20-day and 50-day moving averages have turned upwards and UNG is trading above both.
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If we zoom in a bit and take a look at the hourly chart, we are presented with two scenarios:
2. The head and shoulders pattern within the wedge breaks downwards and the down trend resumes.
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I'm leaning towards option one, but will be waiting for a breakout confirmed with volume in either case.
Editor's Note: Chris Vermeulen offers more content at his sites, TheGoldAndOilGuy.com and Traders Video Playbook.
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