Monday, January 24, 2011

Update: Natural Gas

UNG failed to effectively break out and close above the 6.40 resistance level. Since UNG invests in NG futures, it makes sense to look at how the underlying futures are acting. It is apparent on the chart that the front month future is actually forming a bearish ascending triangle. Unfortunately, the next likely move is down to test the lower bound of the trading range and hopefully gather energy for another breakout attempt later on.


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