By Mike Paulenof
All of the action off of Friday's high at 1224.50 in the emini S&P Today's action in natural gas and in the U.S. Natural Gas Fund ETF (NYSE: UNG) argues for higher prices. Increasingly, the pattern that continues to unfold in the UNG since early October has taken the form of a rounded bottom, which if accurate argues for upward pressure into key near-term resistance plateaus at 6.00/05, and then at 6.20/25, each of which if hurdled will trigger potentially powerful short-covering that will propel prices towards my optimal next target zone of 6.60-.70.
Today's action appears to be carving out a bullish digestion area between 6.00 and 5.85, which should resolve to the upside that will force the initial wave of short covering.
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All of the action off of Friday's high at 1224.50 in the emini S&P Today's action in natural gas and in the U.S. Natural Gas Fund ETF (NYSE: UNG) argues for higher prices. Increasingly, the pattern that continues to unfold in the UNG since early October has taken the form of a rounded bottom, which if accurate argues for upward pressure into key near-term resistance plateaus at 6.00/05, and then at 6.20/25, each of which if hurdled will trigger potentially powerful short-covering that will propel prices towards my optimal next target zone of 6.60-.70.
Today's action appears to be carving out a bullish digestion area between 6.00 and 5.85, which should resolve to the upside that will force the initial wave of short covering.
Sign up a FREE 15-Day Trial to Mike Paulenoff's ETF Trading Diary!
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