Last October, I went long UNG because of a completed Elliot Wave pattern. Since then, there has been a bit of upside progress, but I believe the market is setting up for a much bigger move to come soon.
Notice in the chart above that price did bottom out shortly after I suggested going long. However, the rally has been rather shallow. What strikes me as bullish is that there have been several sharp attempts to make new lows during the past few months, but each selloff was bought, which indicates a lack of overall supply (basing action).
We are currently at trendline resistance, but I believe that because the COT data shows commercial traders holding their largest long position in months, price will ultimately break higher. My target is $12 on UNG.
2 comments:
Natural gas is one of the few commodities thats still a great bargain.
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