UNG Natural Gas Fund Weekly Chart

UNG weekly chart shows the long slide south. Keystone has liked UNG from September on so, as the ole trading wise crack says, if he liked it at 9-ish, he has to love it at 7-ish. This 7.80 is an attractive entry area. The chart shows positive divergence in the monthly timeframe, and closer in, over the last month, RSI, MACD histogram and stochastics are agreeable to see upside. MACD line and money flow, however, are a bit tempermental and at least want price to poke around in this area a wee bit longer.

Projection is higher prices moving forward from here, 7.8-ish serving as a base, also a potential head for an inverted H&S that will need a right shoulder in the coming months. With the projected gluts in natty supply due to the success with shale gas, price has plummetted. Now the weather men, as if they are someone to listen to, say a mild winter is ahead which would futher provide pressure on price. Commodities are funny. Tomorrow you can wake up to lower estimates on supply since regulations against drilling are mounting, and environmental and safety concerns are hurting the fledgling shale gas industry. Couple that with a couple snow storms and natty will be jumping higher to welcome in the New Year. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your financial advisor before making any investment decision.