UNG Natty Gas Weekly Chart Tweezer Bottom Positive Divergence

UNG price has finally worked downwards to bounce off the lower rail of the channel. Note the neon green box showing the tweezer bottom (the two candle shadows stick out lower giving the appearance of tweezers). UNG has matched the intial price low from two weeks ago and note the strong positive divergence. The long red candles show the capitulative selling over the last couple weeks where long players held, until the pain was too great, so they yelled 'Get me out!'

The way the game is played, if you remember, is the pundits across media told traders that natty gas price is going under one dollar so any long that held thru the bounce, only to see price drop again, finally capitulated with these negative thoughts in mind. Guess what? The hedgies and institutions just so happen to want to be nice guys and they will take those shares off your hands, doing you a favor since they simply want to help. Yeah, sure. Note the huge buy week candle last week illustrating the huge buying, much of it short-covering, in UNG.

Thus, Joe Sucka rides natty south from October to January, and gives up and capitulates at the bottom while the 'smart' money comes in and buys ready to ride the projected sideways to sideways up move from here forward. The hedgies own the shares now and Joe Sucka is holding the bag.  Natty remains Keystone's favorite commodity for 2012. 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.