UNG has been trending down since late last year. The rising wedge from late December 2016 to late January of 2017 broke down to continue the trend. The two horizontal green lines show that the natural gas fund has been trading in a range for almost two weeks, with price now touching SAR. It is possible that as price gets to the lower support of $6.49, the buyers step back in a drive the price back up. The trade we are watching is a break below support at $6.49, or above resistance at $6.77. We will look for a doji candle in the coming days and weeks on higher volume, where we will then set one cancels the other buy and sell orders above resistance and below support in anticipation of a breakout of the range and the Falling Wedge.
Thursday, March 2, 2017
Chart 5: UNG trading in a Range of a Falling Wedge
UNG has been trending down since late last year. The rising wedge from late December 2016 to late January of 2017 broke down to continue the trend. The two horizontal green lines show that the natural gas fund has been trading in a range for almost two weeks, with price now touching SAR. It is possible that as price gets to the lower support of $6.49, the buyers step back in a drive the price back up. The trade we are watching is a break below support at $6.49, or above resistance at $6.77. We will look for a doji candle in the coming days and weeks on higher volume, where we will then set one cancels the other buy and sell orders above resistance and below support in anticipation of a breakout of the range and the Falling Wedge.
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